Japanese Shares Fall to 2 Month Low

Shares in Japan fell to a two-and-a-half month low on Friday, following a fall in US stocks and the yen gaining strength against the dollar.

In Tokyo, the benchmark Nikkei 225 traded down nearly 3% at one stage to 16,592.57 points, its lowest since 31 October.

The index finished the day 1.4% lower at 16,864.16 points.

Losses in the US came after the Swiss National Bank moved to scrap its exchange rate cap with the euro.

The move sent the value of the Swiss franc soaring, which put pressure on the euro, and helped the dollar reach a fresh one-month low of 115.90 yen.

When the yen gains strength against the dollar, Japan’s investors worry because it can make exports more expensive.

In Hong Kong, the benchmark Hang Seng index followed suit and finished down 1% at 24,103.52 points.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza