This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Japanese Yen Fueled by Earthquake

(Market prices updated.)
NEW YORK ( TheStreet) -- The Japanese yen advanced Friday after a massive, tsunami-inducing earthquake struck Japan, killing hundreds.

It was the biggest earthquake ever to hit Japan.

The U.S. dollar slid 1.3% against the Japanese currency at 81.876 yen. The CurrencyShares Japanese Yen Trust (FXY) exchange-traded fund rose 1.3% to $120.61, while the PowerShares DB US Dollar Index Bearish (UDN) added 0.7% to $27.87.

"You would expect any catastrophic event would have a negative impact on the victim's currency," Chuck Butler, president of Everbank World Markets, said in a morning report. "But this natural disaster has caused these Japanese investors to bring their currency back home, as they fear they will need it to help rebuild."

Over the years, Japanese investors have been investing their savings in foreign markets, including the higher-yielding currencies of New Zealand and Australia, given the near-zero interest rates in their home country. But the magnitude of the earthquake's devastation was helping to reverse this trend.

Still, Butler cautioned that the yen's appreciation will likely be short-term, and he advised longer-term investors to avoid the Japanese currency.

"The economy will actually benefit from this disaster in the short run as there will be fiscal stimulus from reconstruction. But Japan's budget deficits are already close to 10% of GDP, and this additional spending will only add to the problem facing Japan's aging population," he said.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BP $33.58 0.00%
CVX $102.18 0.00%
EWJ $11.42 0.00%
FXY $90.93 0.00%
FXE $111.84 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs