Japanese yen is heading higher against its major counterparts today, getting help from the latest economic data. With an improvement in data, there is the thought that maybe the Japanese government won’t be quite so aggressive at pursuing weakness for the yen.
Today, there is a report that the corporate service price index is seeing a gain of 3.5 per cent year over year in Japan. This news indicates that the economy might actually be growing. The Japanese economy has been struggling for decades now, with the Japanese government pursuing policies that encourage weakness in the yen in order to stimulate economic growth and make its exports desirable on the world stage.
Now, though, it appears that there has been some progress made by the Japanese economy. The Bank of Japan and other policymakers might be willing to slow their efforts to boost the economy to some degree. Even though it’s too early to quit with yen weakness altogether, policymakers and officials will likely allow a degree of appreciation from the yen for now.
At 10:44 GMT the yen is up pretty much across the board. EUR/JPY is down to 136.7880 from the open at 137.3750. USD/JPY is down to 107.8400 from the open at 108.3580. GBP/JPY is also down, dropping to 173.6270 from the open at 174.3080.
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