The swine flu outbreak in Mexico during the weekend made majority of the foreign exchange market players go for purchasing of more safe currencies. The most popular in this range is the Japanese Yen, most likely because the country is isolated from the disease geographically.
As Japan is an island, it will be much easier for the country to keep the swine flu away from its coasts, and as for now, there are no signs or cases of swine flu in the country.
The Mexican peso has suffered the most, because of the significant influence of the disease on the country (as for now, over 80 people killed by the illness), and fell to the level of 7.0846 vs the Yen, while on Friday it cost Y7.2864.
New Zealand and Australian currencies have also been affected by the disease, as there has been one case of swine flu in New Zealand and it is suspected that some Australian tourists could as well bring swine flu from Mexico or America. Therefore, both New Zealand and Australian dollar fell against the Yen.
The Euro also fell against the Yen, declining from Y128.79 to the level of Y127.04, as it is suspected that flu will spread to Europe as well.
The swine flu is likely to cause problems with economies of influenced countries, especially limiting the options for transportation of goods and travelling of people.