Tuesday, 22 May 2012

Yen Slides as Fitch Downgrades Japan

May 22nd, 2012 at 12:09

Japanese currency and coins
The Japanese yen fell today as Fitch Ratings downgraded Japan’s sovereign credit rating because country’s actions to reduce public huge public debt are too slow.

Fitch cut Japan’s long-term foreign-currency rating from AA to A+ and lowered the local-currency grade from to AA- A+. The outlooks on both rankings are negative. Some financial specialists recommended buying the yen against the dollar. They are reasoning that the yen is too attractive amid present turbulent times and the currency would bounce back rather soon.

USD/JPY was up from 79.29 to 79.83 and EUR/JPY rose from 101.62 to 101.96 as of 12:08 GMT today.