The Yen stopped rising. Overview for 27.08.2019

On Tuesday, USDJPY stopped falling; right now, it is trading at the levels of the beginning of the week. 

The Japanese Yen reached stability after significantly rising against the USD yesterday. The current quote for the instrument is 1.1101.

Japanese policymakers are monitoring the national currency rate very carefully. Tarō Asō, the Japanese Minister of Finance, said today that he was watching the Yen rate with a sense of alarm after fluctuations that take place earlier. In his opinion, the rate stability is very important. However, Asō withheld comments on acceptable rate levels for the Yen. 

He believes that it’s very essential to watch the Yen behavior. This issue became went to the front burner again after the Yen skyrocketed in response to escalations in US-China trade wars. Investors usually use the Yen as a “safe haven” asset and the demand for the national currency is increasing at the time of market fluctuations when market players need to avoid risks. 

If the Yen strengthens too fast, it may hurt the country’s economy along with the export. It's no secret that the Japanese GDP strongly depends on the export, that’s why any declines in its parameters will be very painful for the entire economy.