The Japanese Yen is seeing mixed trading due to the impacts of the release of a plethora of Japanese economic data and as the partial shutdown of the US federal government increased demand for safe haven currencies.
Early in Tuesday’s session the Yen fell against the US currency after the release of a number of data reports for the world’s third largest economy. Most of the published data came in weaker-than-expected putting pressure upon the currency and sending investors back to the Dollar. The main exception was the Bank of Japan’s Tankan Manufacturing Index which came in at 12 for the third quarter and which beat economist forecasts for a reading of 7.
Other data showed that household spending in Japan fell by 1.6%, a sharp fall compared to the predicted rise of 0.1%. Japans Statistics Bureau also revealed that the nation’s unemployment rate rose to 4.1% in September, up from the 3.8% recorded in August. Economists had been calling for the figure to remain unchanged. In another report, the Japanese Ministry of Health, Labour and Welfare said that Japan’s average cash earnings fell by 0.6% in the third quarter.
After the data releases the Yen then found support after Prime Minister Shinzo Abe went ahead with his proposed sales tax increase, he also revealed that he will implement a stimulus programme in an effort to keep the world’s largest debt burden under control. The tax will rise to 8% marking the first increase since 1997.
“I believe it is possible to quickly put Japan back on a growth path. Because of this and to maintain trust in Japan and to hand to the next generation a sustainable social-security system, I have decided to raise the sales tax,” Abe said.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.0052
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 159.1299
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.9532
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.4865
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.3160
(Correct as of 10:30 am GMT)
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