The Japanese Yen posted strong gains just a day after a big earthquake hit Japan as traders expect the Japanese government to buy Yen from the Forex market, repatriating it for rebuilding efforts within Japan. Major currency trading partners fell against the Yen; the Dollar fell by 1.4% while the Euro traded 0.5% shortly after the US markets re-opened a day after the devastating 8.9 earthquake rocked the whole country of Japan.
"Speculation in advanace of repatriation, that's what's driving the Yen up right now," remarked Jeffrey Young, the group head of the North American FX Research at Barclays in New York. Traders are expecting insurers and other other companies operating off of the Japanese mainland would need to buy large sums of Yen currency in order to settle insurance claims in the wake of the 7th biggest earthquake in world history.