During Australasian trading the safe-haven Yen gained on its rivals and strengthened to a month-high against the US Dollar.
The Japanese asset was boosted as declining Asian shares and concerns of ongoing weakness in the world’s largest economies inspired a bout of risk aversion.
The Japanese Yen exchange rate was in the region of 150.9190 Yen to one British Pound as of 10:30 am GMT
With economists forecasting that today’s US housing data will show a drop in the number of pending home sales the Yen may be able to retain gains against its American counterpart prior to this week’s most influential event – the Federal Open Market Committee’s two day policy meeting.
Data due for publication tomorrow is also expected to show that US consumer confidence fell from 81.4 in June to 81.0 in July.
Meanwhile, over in China the nation’s leading index fell from a revised 99.72 to 99.55 in June, adding to concerns of a slowdown in the world’s second largest economy.
The Yen was also able to post a modest advance against the Pound as an unexpected decline in UK mortgage approvals caused the British currency to soften during the European session.
The GBP/JPY exchange rate hit a low of 149.9580
As currency strategist Kengo Suzuki observes: ‘The Yen is being bid as Japanese stocks decline. Dollar-Yen has been struggling to rise above the 100 level since late June and may see further downward correction.’
In light of recent data, industry experts are expecting that the FOMC statement will reflect US economic concerns and make some reference to a potential timeline for reining in easing.
This week GBP/JPY movement is most likely to occur in response to the Bank of England’s rate decision, taking place on Wednesday.
Japanese data to look out for includes tomorrow’s household spending, jobless rate and industrial production reports, Wednesday’s manufacturing PMI and housing starts figures and Thursday’s bond buying data.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.9500 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 150.9190 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.1570 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 79.2024 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 90.6511 <
(Correct as of 10:30 GMT)
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