The Japanese Yen has recovered some ground against Sterling and made gains against the US Dollar after overnight losses in the Japanese equity markets spurred on demand for the safe haven Yen.
The GBP/JPY exchange rate fell to 157.1900
The Yen managed to rise to its highest level since September 6th against the ‘Greenback’ and is likely to find resistance at the key 100.00 level. The reason for the equities market decline was the release of core machinery data which came in unexpectedly flat at 0.0%. The figure dented investor optimism over the strength of the Japanese economy.
Hopes are high that the Japanese economy will begin to break its way out of the years of stagnation and with Tokyo winning its bid to host the 2020 Summer Olympic Games optimism of a brighter future have increased.
Masamichi Adachi, a senior economist with JP Morgan Securities Japan, said: “My sense is that Japanese people like goals, targets that make people feel like ‘we have to do it’. That makes more private investment come in to Tokyo. People feel that they should spend. That makes the economy in better shape, compared to without the Olympic Games.”
The Japanese government believes that by hosting the games Tokyo will generate around 3 trillion Yen and could add up to 152,000 new jobs. The games could in theory be the shot in the arm that the Japanese economy needs.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.4249 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 157.1601 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.2354 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.8432 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.8428 <
(Correct as of 09:35 am GMT)
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