After the publication of several disappointing pieces of data for the Eurozone, and given yesterday’s weaker than anticipated growth for the US, risk sentiment declined and the safe-haven Yen strengthened against its peers over the course of Friday.
The Japanese Yen exchange rate was in the region of 100.4000 Yen to one US Dollar as of 14:00 GMT
The Asian currency’s advance was also aided by the International Monetary Fund asserting that the Yen had weakened ‘moderately below’ its natural trading value.
During a press conference in Tokyo the IMF’s first Managing Director asserted: ‘We appreciate that the attempt to escape deflation has had an effect on the exchange rate and out assessment is, right now, that leaves the exchange rate moderately below what would be consistent with medium-term norms.’
However, the IMF did state its support for the unprecedented policy measures taken by the Bank of Japan, despite them being largely responsible for the Yen’s decline. In its annual review of Japan’s economic policies the IMF noted: ‘We fully endorse the BOJ’s objective to raise inflation to 2 per cent and the sweeping enhancements to its monetary policy framework.’
The Yen is now poised to record a weekly gain against the vast majority of its most traded currency peers.
The currency was pushed higher against the US Dollar as Japanese stocks declined, upping the pressure on the nation’s Prime Minister to bolster the world’s third largest economy.
As foreign exchange strategist John Hardy comments; ‘The main focus is on the Yen at the moment. The data is showing that Abe’s policies are getting a little bit of traction. I am looking for a consolidation around these levels against the Dollar.’
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.4000 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 152.7980 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.4820 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.1993 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 96.4132 <
(Correct as of 14:00 GMT)
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