Yen hit an 8-week low against the dollar after data showed overseas assets demand is growing against Japanese investors and US is showing clear data of the crisis coming to an end.  Forex metatrader users were purchasing high dollar quantities against the Japanese currency.

Japan´s Ministry of Finance said investors have increased purchases of foreign bonds, lowering yen versus the dollar. US treasuries rose to a ten year high.

 “Higher yields coupled with falling volatility may now begin to entice more outflows from Japan,” Said Derek Halpenny, European head of global currency research at Bank of Tokyo- Mitsubishi UFJ Ltd. “We did not expect such a surge in U.S. 10-year yields, which is certainly dollar-yen supportive.”

Yen lowered as much as 1.9 percent to 97.24 against the dollar, its biggest drop since March 31, before dropping to 96.74 in New York morning trades. Yen has depreciated 2.3 percent versus the euro on the free forex software.

Japanese investors bought 641.1 billion yen on overseas bonds, being may the biggest net purchase according to the Ministry of Finance. As yen lowers jobless claims in the US diminish, re affirming a close end to the economical crisis.

Yen versus Euro

Yen fell against a stronger euro as Nikkei Average recovered from earlier losses to a 0.1 percent gain.
 “Equity markets of emerging economies, including Asia, are holding a relatively firm undertone, which means risk appetite is still reasonably strong,” said currency leader Akira Takeuchi from Chuo Mitsui Trust & Banking Co.