The yen weakened against all of its major counterparts as optimism about the global economic recovery is gaining momentum spurred demand for stocks and other higher- yielding assets. The JPY fell against the USD and closed at 90.80. Moreover, the Japanese Yen lost almost 120 points versus the EUR, closing at 126.40.
The Japanese currency fell for a second day versus the EUR before forecast reports about retail sales in Germany, Europe's largest economy, rose. The U.S. home sales forecast report also showed improvement. The yen usually does well during times of economic downturn, but when investor confidence is restored, the market may see a sell attitude develop as traders return to their carry trades; selling JPY in exchange for higher yielding currencies.
