As factory output in China, the world’s second largest economy, slowed the safe-haven Yen strengthened against the majority of its most traded counterparts.
After China’s manufacturing PMI was shown to have fallen to 50.4 the Yen advanced, because as strategist Ray Attrill observes; ‘the Yen still hasn’t completely shaken off its safe-haven mantel. During periods of market stress the dollar-yen has tended to buck the upward trend that it’s been in.’
As the European session progressed the Yen was able to post additional gains against the Euro as a report showed that the Eurozone’s manufacturing sector contracted last month.
The Japanese Yen exchange rate was in the region of 97.2300 Yen to one US Dollar as of 11:00 am GMT
The Asian currency’s advance was also aided by speculation that the European Central Bank will issue a rate cut today, potentially taking interest rates to a record-low of 0.5 per cent.
If a rate cut occurs the Yen could continue to advance on the Euro.
As currency strategist Lutz Karpowitz notes: ‘The question is whether they will cut rates or not. It certainly seems that the weakness of the Euro-region economy is one of the bigger burdens on the Euro. If they were not to cut rates, it would be a disappointment for the market and be Euro positive.’
Meanwhile, the Yen also strengthened against the US Dollar following worse-than-forecast US employment data and the FOMC’s policy announcement.
The Federal Reserve vowed to maintain its current level of monthly bond buying, and intimated that if the US economy should continue to struggle it is ready and willing to make additional policy adjustments.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.2300 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.4030 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 128.0030 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 82.2748 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.3788 <
(Correct as if 11:00 am GMT)
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