By Max Clarke
As radiation from Japan's damaged Fukushima reactor reaches Tokyo, the Yen has risen to a dangerous 15 year high after reduced fears of a meltdown calm speculative investors.
Asia's export oriented economy relied heavily on the Yen, and its strength reduces the competitiveness of the region's exports.
Commenting on the Yen's trajectory is World First exchange brokers' chief economist, Jeremy Cook:
“The 80.00 level is a massive psychological level in the markets and while it seems perverse that the yen is strengthening on the back of a possible nuclear disaster
“A similar move happened post-Kobe. 3 months after that catastrophe USDJPY had lost near 20% to sit at an all-time low and traders are betting on the same.
“It is now a game of chicken between the market and the Bank of Japan over intervention to try and weaken the yen and help the already fragile Japanese export market…”