Although the Yen strengthened slightly against the US Dollar yesterday (as American industrial production dropped by more than expected, investors locked in profits made possible by the recently bullish ‘Greenback’ and the appeal of safe-haven assets was boosted by fairly dismal news from the Eurozone) it lost ground once more and quickly returned to trading in the region of 102.4500.
The Japanese Yen exchange rate was in the region of 102.4200 Yen to one US Dollar as of 10:00 am GMT
After the Dollar weakened forex expert Yosuke Hosokawa noted: ‘Today’s moderate [Dollar] setback is due to cautious sentiment among players as they adjust their trading positions after the Dollar surged so fast. But the overall dollar-buying trend has yet to change.’
And it appears Hosokawa is right.
The Asian currency was largely unaffected by growth data for Japan, despite the nation’s GDP rising at an annualised rate of 3.5 per cent and exceeding estimates, largely due to export gains and consumer spending.
While this positive piece of news inspired a brief spate of Yen selling, movement was limited on the expectation that the Japanese central bank will continue with its unprecedented easing is spite of the stronger-than-expected growth.
In response to the GDP figures one economist asserted: ‘Japan is clearly back from stagnation last year. The key from here is whether Abe can unveil a strong growth strategy. If he succeeds, that will boost business investment to support growth.’
Additional fluctuations in the USD/JPY pairing can be expected to occur in the hours ahead as the market reacts to a string of economic data from the US, including initial jobless claims, CPI and housing starts.
Japanese Yen (JPY) Current Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.4200 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 155.6430 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.5970 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.5400 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.5240 <
(Correct as of 10:00 GMT)
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