Yen's currency exchange rate 'losing steam'

The currency exchange rate for the yen is expected to lose some of its current strength.

Negative global data helped push the Japanese currency to near a 15-year high against the US dollar in the last month.

A reported decline in UK house prices and a slow return to job growth in the US were among the factors concerned.

Hiroshi Yanagisawa, a dealer in Tokyo at FX Prime Corp, told the news source: "Worries about the global economy are rife. The yen is likely to shine as risk appetite wanes".

Analysts have suggested that this behaviour is typical of the yen during times of economic turbulence.

This is because the country's trade surplus means that it is not reliant on overseas capital.

According to Bloomberg, the yen has climbed a total of 16 per cent over the course of this year.

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Posted by Eleanor Ward