Yen loses value on Nikkei volatility
The yen has been hit by the volatility of the Nikkei in recent weeks.
The yen has lost value again today (May 28th), with analysts blaming the drop in the currency on the volatility of the Nikkei index.
Although the Nikkei is up by around 50 per cent on the start of the year, it has fallen by ten per cent in the last week, falling away from a series of new five-and-a-half year highs.
Koichi Takamatsu, a manager of forex at Nomura Securities, told Reuters that he expects the yen to take the lead from the Nikkei in the coming days and weeks.
The dollar rose by one per cent to 101.95 yen, which is up more than a full yen from two-week low of 100.66 hit on Friday.
It has also been able to remain above key technical support levels – which includes 21-day moving average – at 100.80 yen.
Earlier in the month, the yen slipped to a new five-year low against the dollar, with some analysts claiming this is part of prime minister Shinzo Abe's plans for the Japanese economy.
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