The Japanese yen on Tuesday closed three-straight days of losses against the world's reserve currency as stocks lost value, Bloomberg reports.
The currency of the Pacific Rim nation increased in value against 12 or its 16 major rivals as speculation continued regarding the economy-spurring asset purchase program of the U.S. Federal Reserve and whether it will taper. The yen climbed 0.3 percent against the greenback.
"Even dollar/yen which should be gaining because of rising U.S. yields has been hit by these risk-averse conditions," currency research head Simon Derrick with BNY Mellon told Reuters on Tuesday. "Some of the Japanese investors who have been buying overseas bonds may have turned cautious."
Minutes of the July policy meeting of the U.S Federal Reserve are scheduled to be released on Wednesday, which investors and analysts are likely to scour amid the speculation about whether monetary stimulus measures will be slashed.
The Japanese yen often is in demand during stressful occasions for financial markets and when economic questions permeate the market, according to Reuters. Such is the case with the falling value of stocks.
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