The battered European currencies are faring well, with safe havens like the Japanese Yen and US Dollar pulling back. While not anywhere near ground zero in financial markets in terms of impact , the net-result of improving risk appetite has proved beneficial for the British Pound. Some market participants believe the BoJ may change its ultra-loose policy to slow the yen's decline, which is being driven by rising interest rate differentials as the US Federal Reserve embarks on aggressive rate hikes. Among the factors behind the yen's weakness was the widening gap in economic conditions between Japan and Western countries.
