The Japanese yen climbed today as poor macroeconomic data from China and escalating tensions in Ukraine put the Forex market in the risk-off mode, which supported the currency in its role of a safe haven.
The HSBC manufacturing Purchasing Managersâ Index was at 48.1 in April, below the preliminary estimate and analysts’ expectations. The reading below 50.0 indicates contraction of the sector. Clashes in Ukraine left more than 100 people dead, reducing chances for a peaceful end to the current situation. Meanwhile, Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy is on the path to recovery, making economists speculate that the central bank will not add monetary stimulus in the future.
USD/JPY dropped from 102.12 to 101.91 and EUR/JPY fell from 141.78 to 141.41 as of 9:16 GMT today.
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