Japanese yen is mostly lower today, following the release of the latest services PMI data. Additionally, expected changes to the government’s investment fund are expected in the coming weeks, and that is also having an impact.
The latest Japanese services PMI data showed a drop to 49.9 in August. This is down from the July reading of 50.4. Even though composite PMI climbed, the concern about services PMI is still weighing on the yen
Also affecting the yen right now is an expected change to the Government Pension Investment Fund. This fund is expected to become more aggressive in the coming months, and could even include currencies. This would raise demand for currencies other than the yen. The Fund is huge, and, as a result, has quite a lot of influence.
These factors, plus continued easing efforts by the Bank of Japan, have the yen mostly lower today. The main exception is against the US dollar. After plunging dramatically against the greenback in earlier trading, the yen is now moving a little bit higher. But the yen fell so much yesterday and overnight that it’s going to be quite the slog.
At 10:39 GMT USD/JPY is down to 105.0660 from the open at 105.0915. EUR/JPY is up to 138.1325 from the open at 138.0270. GBP/JPY is up to 173.1900 from the open at 173.0855.
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