The Japanese yen, often associated as the best performing currency in times of crisis due to its refuge investment profile, lost today as the OECD predicted an unexpected growth to its member countries, spurring demand for high-yielding assets.
The Organization for Economic Cooperation and Development stated today that its 30 member nations are expected to grow 0.7 percent next year, after a decline forecast of 4.1 for 2009, an affirmation which despite the negative numbers for the current year rose investors confidence to purchase higher-yielding assets this Wednesday in equities and currencies markets. Currencies like the Norwegian Krone, highly associated with the crude oil rates, and the Australian dollar led the gains versus the yen, which after days of tension in stock markets, had a considerable rally in the beginning of the week. The greenback was one of the few currencies that lost against the yen, as today it is very likely that a report will indicate another drop in durable goods orders in North America.
The yen is in the hands of the risk appetite levels, according to currency strategists. Currently without any expected data from that Asian nation indicating any economic movement other than the already expected, the Japanese currency is being moved by investors confidence and the waves of risk aversion and appetite. It is hard to determine what direction the yen will follow, until the equities and commodities markets define a pattern.