The misfortunes of the euro currency, which has now declined to four-year lows vs. the U.S. dollar, have been the fortunes of the Japanese yen-focused exchange traded funds (ETFs).
The Japanese yen is making moves that have taken the currency higher than both the pound and the euro. It’s not yet up to par with the U.S. dollar, though. Daily FX reports that the fundamental picture has started to brighten for Japan, the world’s second-largest economy, with improving exports pushing the current account surplus to a two-year high of $27.2 billion. [Currency ETFs Make Moves.]
As investors continue to seek risk aversion and make a flight to quality in their investments, the yen could move even higher. FX Street reports that another factor supporting the yen is the Bank of Japan’s two-day rate-setting meeting. The next Asian session monetary policy statement could reflect the Japanese yen as having regained the upside against major rivals. [What Currency ETFs Say About Economies.]
For more stories about the Japanese yen, visit our Japanese yen category.
- CurrencyShares Japanese Yen Trust (NYSEArca: FXY)
- WisdomTree Dreyfus Japanese Yen (NYSEArca: JYF)
Read the disclosure; Tom Lydon is a board member of Rydex|SGI.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.