Financial news
Written by: Zhang Weilun
2020-01-16 10:13
Last updated: 2020-01-16 10:33Next week is the Lunar New Year holiday. Passengers preparing to travel to Japan should pay attention, and the yen has weakened again. A test of 7 per 100 yen against the Hong Kong dollar is considered to be the threshold. Today, it has fallen below 7.07, reaching as low as 7.0665, and last reported at 7.0698.
The yen was as high as 109.99 against the US dollar, with the latest quote at 109.93.
The yen, seen as a safe-haven currency, rose on December 25 last year, and it rose above 7.3 per 100 yen against the Hong Kong dollar. At the beginning of this year, it rose above 108 against the US dollar and flew to the 107.5 level. However, as China and the United States have reached the first phase of the trade agreement, market participants' risk aversion has eased, and on Tuesday (14th), it fell below the 110 mark against the US dollar for the first time in eight months.
Market participants are also pessimistic about the outlook for the Japanese yen. Kengo Suzuki, chief foreign exchange strategist at Mizuho Securities, pointed out that the current fluctuation range of the yen against the US dollar has moved from 105 to 110 to 110 to 115.
According to Suzuki Kengo's forecast, it will be between 7.0645 and 6.7573 per hundred yen against the Hong Kong dollar.
Risk aversion eases sought-after RMB
With the relief of risk aversion among market participants, emerging market currencies such as the RMB have become the target of investor absorption, and have risen above the 6.9 level.
Kit Jockes, a strategist at Société Générale, advised investors to short USD / CAD, NOK and SEK.
Jefferies analyst Brad Bechtel pointed out that the improvement in the US-China trade situation has prompted investors to be more willing to invest funds in risky assets.
Japanese yen, yen depreciation, Hong Kong dollar exchange rate