The Japanese yen weakened today as a report showed that nation’s inflation stalled this month, fueling speculations that Japan’s central bank will intervene to support the struggling economy.
Japan’s Consumer Price Index was unchanged (zero growth) in November from a month ago, according to the preliminary data. The annual change was -0.4 percent. The report added to speculations that the Bank of Japan will implement additional stimulating measures, weakening the nation’s currency.
The yen also weakened amid hopes that the United States will avoid the fiscal cliff. The optimism was somewhat hurt by the comments of John Boehner, but the market sentiment remained positive for the most part.
USD/JPY rose from 82.10 to 82.35 as of 6:12 GMT today. EUR/JPY advanced from 106.55 to 107.07 and its daily maximum of 107.28 was the highest since April 27. GBP/JPY went up from 131.68 to 132.13.
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