The Japanese yen fell against most major currencies this week as there were no indications that Japan’s government will be prevented from weakening the currency even more.
The yen was rising for the most part of the week amid speculations that the Group of Seven or the Group of Twenty would scold Japan for devaluing currency. Yet by the end of the week it became apparent that the Asian country would get away with its practices of pushing the currency down. Indeed, the members of G7 and G20 pledged not to intervene in exchange rates directly, but did not talk about Japan and the yen specifically.
The macroeconomic data suggested that the Abe’s government will continue with their efforts to spur economic growth as the economy remains weak. Japan’s gross domestic product unexpectedly fell 0.1 percent in the fourth quarter of 2012, while analysts have hoped for 0.1 percent growth.
USD/JPY rose from 92.70 to 93.54 this week and the weekly high was at 94.44 — the highest since May 2010. EUR/JPY climbed from 123.91 to 124.95, while the weekly high was at 126.92. GBP/JPY dropped from 146.43 to 145.12.
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