The Yen declined against most of its major currency counterparts Thursday, as concerns over the pace of the global economic recovery eased. The JPY traded at 92.93 per USD Thursday. The Yen finished trading at 129.90 from 129.41 per EUR, after declining 1.1% yesterday. However, it reached 127.02 on July 8, the strongest level since May 18.
The Yen weakened as traders returned to risk appetite, pushing the EUR and GBP higher. The Yen typically rises during times of financial trouble since Japan's trade surplus reduces the nation's reliance on overseas assets, which lends the currency its safe haven status. In light of the recent bounce in risk appetite, it appears that the Yen's recent rise may have been exaggerated as there is no real data to support it. Therefore, the Yen's losses are likely to continue throughout today as well.