A decline has been experienced by the Australian and New Zealand Dollar against Yen, thanks to the low performance of the Asian stocks.
The Australian Dollar decreased to 77.87 Yen from 78.30 Yen in New York and the New Zealand Dollar climbed down 0.6% against Yen to 62.62.
The New Zealand's currency dropped against several significant currencies earlier, as well.
On account of slow global recovery and less consumer spending, MSCI Asia Pacific Index plunged 0.7% and the Shanghai Composite Index slumped 0.2%.
Another cause for the weakening of the currency can be the release of a Government report, which showcased the hike in the unemployment rate in the second-quarter. It also raised fears that the bank would not make any further increase in the interest rates. The fall in the housing prices in the region is also one of the factors.
Mumford, a Sydney-based senior consultant at HiFX said, "The market is looking to the future and they're not convinced about what's happening in the global market so that's why the yen is such a strong trade at the moment". He further added that the period is opportunistic to buy Yen.
In the second-quarter, the unemployment rate increased to 6.2% from 6% in the first-quarter.
The Chinese currency's stronger position can harm the Australia's terms of trade, which is the base for the sound economy, as expressed by Mumford.
