The Japanese Yen strengthened against several of its most-traded peers this morning as last week’s US GDP data continues to impact the market.
The Japanese Yen exchange rate was in the region of 97.7800 Yen to one US Dollar as of 09:55 am GMT
Despite markets in Tokyo remaining closed on Monday for a national holiday, the Yen strengthened to 97.8700 against the US Dollar as the European session opened – edging further away from the four-year low recorded at the beginning of the month.
The Yen could continue to advance on its American safe-haven counterpart this afternoon if US consumer spending figures show stagnation, as forecast by economists.
According to one senior analyst: ‘It looks like Dollar longs are getting flushed out. The poor GDP reading was big. Cable, Aussie, Kiwi, Canadian Dollar, the Singapore Dollar… they are all moving.’
Although some industry experts expect that the Yen could trade in the region of 96.71 over the next few days, in the long term they forecast that the Bank of Japan’s unprecedented fiscal stimulus methods will drive the Yen back towards the 100 Yen per Dollar mark.
As strategist Gareth Berry notes: ‘We’re still bullish Dollar/Yen. The BOJ story still has a long way to run.’
But not all currency strategists agree. Sean Callow, for one, has a slightly different view. He states: ‘In the near-term the Dollar-Yen is looking a bit vulnerable. The latest data from the Ministry of Finance has shown that but for all of one week since January, Japanese investors have been net sellers of foreign bonds. Until they stop doing that, we could see continued strength in the Yen.’
The Yen also climbed against the Australian and New Zealand Dollars this morning after a report from China revealed a slowing in the profit growth of industrial companies.
The data showed that net income at Chinese industrial companies increased at an annual rate of 5.3 per cent last month. In January and February an annual rate increase of 17.2 per cent was recorded.
Current Japanese Yen (JPY) Exchange Rates
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.7800 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.9890 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 128.0330 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.3905 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.0750 >
(Correct as if 09:55 am GMT)
Comments are closed.