Under such improved circumstances, risk aversion among global investors has weakened compared with the second half of 2011, and positive market developments have been observed, including a pick-up in stock prices around the world. In the foreign exchange market, the yen has depreciated somewhat against both the U.S. dollar and the euro compared with around the end of 2011.
This measure has also risen since 2015, although its gradual increase appears to have paused because of weak inflation readings for March and April. Some of the recent weakness can be explained by transitory factors. And there are good reasons to expect that inflation will resume its gradual rise.