The Japanese Yen has weakened for the first time in four days against the US Dollar following the release of data showing that industrial production in the country declined by its biggest level in two years.
According to the Tokyo based Japanese Trade Ministry, Industrial production declined by 3.3% in June marking the biggest decline since March 2011. Bank of Japan Governor Haruhiko Kuroda said that the nation’s economic expansion will be moderate and that some time will be needed before the Central Bank’s inflation target is reached. The weak data also reinforces the case for the Central Bank to expand stimulus to spur growth.
“We had very disappointing data for Japan’s industrial production in June and that’s weakened the Yen,” said a senior currency strategist at Commerzbank AG. “For now the Bank of Japan will wait and see how what they’ve done so far works, but if inflation doesn’t pick up then they might implement some more measures. The Yen will weaken further.”
Also weighing upon the Yen was the release of the latest business confidence data. Japan’s small business confidence declined in July. The data released by the Shoko Chukin Bank showed that business sentiment fell to 49.4 in July in July, down from the 49.6 recorded in June. The confidence indicator for manufacturers came in at 48.2, down from 48.7 a month earlier. Economists are expecting business confidence to improve marginally in August.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.1666
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 150.6133
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.2964
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 78.4684
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 89.0185
(Correct as of 09:45 am GMT)
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