Japan: Dollar, yen gain on nuclear worries; pound falls(yen up due to raised radiaton level?)

Market Watch ^ | 04/12/11 | William L. Watts and Sarah Turner

[TigerLikesRooster]

April 12, 2011, 6:18 a.m. EDT

Dollar, yen gain on nuclear worries; pound falls

Sterling retreats as inflation pace slows, retail sales tank

By William L. Watts and Sarah Turner , MarketWatch

LONDON (MarketWatch) — Safe-haven flows provided a modest boost for the dollar and lifted the Japanese yen on Tuesday after the Japanese government raised its assessment of the crisis at the Fukushima Daiichi nuclear plant to the same level as the 1986 Chernobyl disaster.

The dollar index (BOARD:DXY) , a measure of the U.S. unit against a basket of six other currencies, traded at 75.007, up from 74.989 in late North American trading on Monday.

[TigerLikesRooster]

Japan raised level of nuclear crisis, and then people flock to yen? I wonder what will happen if all reactors at Fukushima blow up sky-high. Yen doubling its value?

[TigerLikesRooster]

P!

[JDW11235]

Tiger, I am NOT well versed in these matters, but my understanding is that the Japanese are heavily reliant on an export market. Some have been saying that the “never let a crisis go to waste crowd” are intentionally trying to make the yen strong, so as to collapse the ability for the Japanese to export what they still can after the reactor problems, quakes, tsunamis, etc.

I have also heard that China is specifically trying to collapse Japan’s economy in order to bait them into the Asian Union, and are pouring money into the yen to acheive the desire result of cripling their export capabilities.

I don’t know much about these things, like I said, but it seems to make more sense than anything I can personally come up with. FReegards.

[TigerLikesRooster]

That sounds more plausible than the lame explanation of “Yen as a safe-haven currency.”

[Katya]

yet the euro keeps increasing?

[GonzoGOP]

Japan raised level of nuclear crisis, and then people flock to yen? I wonder what will happen if all reactors at Fukushima blow up sky-high. Yen doubling its value?

Well there has been a lot of talk about currency backed by metallic assets. Who would have guessed that the metal in question was plutonium.

[Wingy]

Japan raised level of nuclear crisis, and then people flock to yen? I wonder what will happen if all reactors at Fukushima blow up sky-high. Yen doubling its value?

With the raising of the nuclear incident from a 6 to a 7, the Japanese now need much more money, and that money is in yen. If you look at the markets, read silver and gold, you can see that for two days they have been cashing in the metals for yen. Hence, yen goes up and metals go down.

IMHO

[politicket]

Japan raised level of nuclear crisis, and then people flock to yen?

It makes perfect sense.

All 'money' is based on the promise of future labor. Some of those promises of future labor will now never be fulfilled due to the nuclear crisis.

Less promises of future labor equates to less 'money'. Less money means that each unit of 'money' is now worth more.

It's all signs of the deflationary spiral that the banks have brought upon the industrialized world.