“You have the policy easing in Japan, which is pushing the yen lower,” said Omer Esiner at Commonwealth Foreign Exchange, in a Bloomberg report. “There are some structural issues in Japan we’re keeping an eye on that the long-time pillars of yen strength are starting to deteriorate.”
“A falling yen can be interpreted in two ways: a) Flight to safety trades are going out of the market and, b) The yen is starting to be used as a funding currency,” according to Firstpost. “The yen exhibited strength the whole of 2011 as the markets worried about the collapse of the euro and about the debt issues in the U.S.”
CurrencyShares Japanese Yen Trust
Tisha Guerrero contributed to this article.