The Japanese Yen has strengthened against the US Dollar and made gains against the Euro after positive economic data out of the Asian nation was supported by investors seeking safer alternatives to the Euro.
Household spending in Japan surged in March at its fastest pace in nine-years and the country’s unemployment rate fell to its lowest level in more than four years suggesting that Prime Minister Shinzo Abe’s bold efforts to end two decades of economic stagnation are beginning to make an impact.
A not so positive piece of data showed that industrial production in Japan rose at a slower pace than expected in March due to a weakening demand from overseas. Economists however are confident that exports and factory output will eventually pick up thanks to the weakness of the Yen.
“I expect the first quarter gross domestic product growth to exceed an annualised 2 percent, and if the corporate sector catches up with households, the pace of growth could accelerate,” said Yoshiki Shinke, senior economist, Dai-Ichi Life Research Institute.”Recovery in exports has been slow and so has industrial output, but as a weak yen is expected to impact shipments from now on, exports and factory output will pick up in coming months.”
So far this year the Japanese Yen has fallen to a four-year low against the US Dollar as a result of the Bank of Japans radical monetary policy. The weak Yen has increased the attractiveness of Japanese exports creating a rally in share prices, which has helped boost consumer confidence.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.4358
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.0162
The Euro/Japanese Yen Exchange Rate is currently in the region of: 127.3674
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.4049
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.7973
(Correct as if 11:30 am GMT)
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