With the U.S. dollar taking a slight dip, the ongoing turmoil in Europe has pushed many investors to the strengthening Japanese yen.
With the announcement last week that the European Central Bank lending to euro-zone banks jumped by more than 32 percent to 879 billion euros, investors continued to pull away from the foundering euro, according to Bloomberg.
The common currency of the European Union fell as low as 100.73 yen on Wednesday, December 28, its lowest mark in a full decade. This stark decline contrasted with the moderately positive news coming out of the euro-zone itself, as Italy reported selling 9 billion euros of 179-day bonds at a rate of only 3.251 percent, less than half the 6.504-percent rate from one month before.
The rise came as the U.S. Treasury Department criticized Japan on two sales of the yen in August and October. Though the report failed to accuse China of market manipulation, it called out the Japanese government for attempting to control the exchange rate rather than accounting for volatility, according to The Wall Street Journal.
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