The Japanese yen went down today as the reports today are expected to show that the US services industry grew and the European retail sales increased.
The report of Eurostat is expected to show that the retail sales in Europe grew 0.1 percent in February. Experts also predict that the report of the Institute for Supply Management will show that the services PMI rose from 59.7 to 59.8 in March. The signs of the strong economic growth increases probability of an interest rates hike by the central banks of Europe and the US, while Japan’s central bank is unable to do the same.
Yousuke Hosokawa, a senior currency dealer in Tokyo at Chuo Mitsui Trust & Banking Co., said:
The worldwide economic recovery looks robust so thereâs a trend for a weaker yen. Perceptions that the BOJ is lagging behind in monetary normalization is also weighing on the yen.
USD/JPY rose from 84.05 to 84.34 today as of 4:19 GMT. EUR/JPY advanced from 119.51 to 119.71, while GBP/JPY went up from 135.56 to 135.97.
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