While the Yen was able to advance on the majority of its currency rivals during Asian trading, the safe-haven assets gains against the Pound were limited as the British currency was boosted by surprising UK news.
The Japanese Yen exchange rate was in the region of 152.2830 Yen to one British Pound as of 10:10 am GMT
After Japan’s Finance Minister Taro Aso stated that the nation’s Prime Minister, Shinzo Abe, hasn’t requested that he contemplate reducing the corporate tax rate the Yen strengthened against its peers.
Earlier this week reports emerged that Abe was pushing for a study to trim the levy.
As industry expert Tsutomu Soma comments: ‘The market seems nervous on prospects for Japan’s tax policy. Stocks declined on comments that Japan will not cut corporate tax, boosting Yen buying.’
Local data also showed that Japanese investors purchased 1.61 trillion Yen of overseas assets in the week ending August 9th – the most significant amount for three years.
During the same period 403.9 billion Yen of Japanese debt was snapped up by foreign investors.
The GBP/JPY exchange rate hit a high of 152.9000
The Yen’s advance on the US Dollar was aided by some rather pessimistic comments regarding the US economic outlook.
Federal Reserve official James Bullard commented that the Fed’s economic forecasts ‘have tended to be too optimistic over the last several years. Given this experience, I think caution is warranted in taking policy action based on forecasts alone.’
The ‘Greenback’ broadly softened in response to Bullard’s words and currency strategist Kengo Suzuki noted: ‘Dollar-Yen is looking heavy. As Bullard has said in his statement, US economic data would be a key focus.’
Although the Yen posted a modest advance against the Pound overnight the Asian asset lost ground after Sterling was supported by surprisingly strong retail sales data.
Before the weekend additional USD/JPY movement could be inspired by today’s US industrial production data and tomorrow’s US University of Michigan Confidence report.
An absence of UK news may limit JPY/GBP fluctuations.
Current Japanese Yen (JPY) Exchange Rates:
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.8900 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 152.2830 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.1260 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.0968 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 89.8245 >
(Correct as of 10:10 GMT)
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