The Japanese Yen has weakened by 1.68% against Sterling and has made losses against all of its most traded peers after Japanese Prime Minister Shinzo Abe won support for making an increase to a sales-tax.
Against the Euro the Yen declined from a two-week high after Abe won support for the tax hike from policy makers that are calling for more stimulus to help the nation’s economy. Abe is trying to sustain an economic recovery driven by monetary and fiscal stimulus as he moves on to other matters such as trying to implement deregulation needed for the long-term revival prospects for the Japanese economy.
“I expect a sales-tax hike to sustain optimism toward Abenomics, resulting in a weaker Yen. For Japan’s monetary, fiscal and growth policies to be properly executed, a higher levy is needed, and an increase in the sales tax can be seen as the key to these three arrows of Abenomics” said Kengo Suzuki, chief currency strategist at Mizuho Securities Co.
Against the US Dollar the Yen fell to a one-week low in thin trading. The US markets are closed for the Labour Day weekend. The Dollar remains higher against a number of currencies as a result of continuing uncertainty over whether the USA will launch a military strike against the Syrian regime of Bashar al-Assad.
The Yen was unable to make gains despite government data showing that capital spending in the country was flat in the second quarter, compared to expectations for a 2% decline. The data follows the 3.9% decline recorded in the first quarter of the year.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.2137
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 154.3213
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.1109
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 77.4936
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 89.0820
(Correct as of 11:15 am GMT)
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