The Japanese yen weakened today, touching the lowest level since April against the US dollar, as economic data from both the United States and the eurozone was mostly good, making the currency unnecessary in its role of a safe haven.
Growth of the US economy was at 4 percent in the second quarter of this year, exceeding analysts’ expectations. While US employment data was a bit disappointing, it was still relatively robust. European economic indicators were also good for the most part, including the German inflation report and the Spanish GDP data.
The yen dropped due to the risk-positive news but trimmed its losses versus the dollar after the Federal Reserve released its monetary policy statement that turned out to be more bearish than was expected. Still, weak fundamentals in Japan itself make it hard for the currency to hold ground.
USD/JPY climbed from 102.10 to 103.08, the highest since April 8, before trading at 102.85 as of 19:25 GMT today. EUR/JPY advanced from 136.91 to 137.71, and GBP/JPY rose from 173.01 to 173.89, reaching the high of 174.18 intraday.
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