© Reuters. The Japanese yen tops the list of winning currencies today for these reasons!
Arabictrader.com – It achieved strong gains during today’s trading, Thursday, and the major currencies increased by about 5.19%, benefiting from some positive developments, which clearly boosted the demand for the Japanese currency compared to various other major currencies.
One of the most important reasons that boosted the demand for the Japanese yen today is the strengthening of fears about the global economic recession, especially after Nomura Bank cut its forecast for economic growth in China in light of the recent high incidence of Corona infections inside the country, which necessitated the re-imposition of closure restrictions inside China again, and this reinforced Demand for the Japanese yen as one of the safe-haven currencies that increase demand in times of turmoil and reinforce economic concerns.
And in second place in the list of the most profitable currencies today, it comes with an estimated profit rate of about 1.93%, benefiting from the statements of decision-makers within the Bank of England regarding the continuation of tightening monetary policy and raising interest rates, as Deputy Governor of the Bank of England Dave Ramsden stated, today, Thursday, that he prefers monetary tightening policy and further raising Interest rates, in order for inflation to return to the target of 2% in the medium term, and in the event that the Bank of England is able to fight inflation, I will reconsider reducing the interest rate.
While in third place in the list of winning currencies comes the New Zealand dollar, with an increase of 1.65%, also benefiting from the statements of the Governor of the Reserve of New Zealand about monetary tightening in the country and the bank’s recent decision to raise interest by about 75 basis points to control high inflation.
In this context, Governor of the New Zealand Reserve Adrian Orr stated that during the last bank meeting they discussed raising interest rates by between 75 to 100 basis points instead of raising them by only 50 to 75 points, adding that the bank needs to continue moving forward with regard to tightening policy. Monetary and interest rate hikes to curb inflation, and these statements had a positive impact on the strength of the New Zealand dollar in the currency markets.
While it came at the bottom of the list of currencies that rose by 0.44% only due to the absence of important economic data affecting its trading, the main reason for the weakness of the Australian’s profits is the strong rise in Corona injuries inside China, which is Australia’s strongest trading partner, and with the renewal of closure restrictions in China again, it has Chinese demand for Australian commodities is slowing down during the coming period, which has limited the Australian dollar’s profits compared to some major currencies.
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