The Japanese yen demonstrated mixed performance today. The currency gained on the US dollar, fell versus the euro and was flat against the Great Britain pound after rallying earlier.
Hiroshi Nakaso, Bank of Japan Deputy Governor, talked today about the possible negative impact of China’s slowdown on Japan’s economy, saying:
Even if China’s economy maintained its growth rate, the main contribution would be from public investment, so the effect on Asian economies and Japan’s exports warrants due attention.
He also voiced concern that the planned interest rate hike by the Federal Reserve will likely result in capital outflows. Nevertheless, he stuck to the optimistic BoJ outlook that expects inflation to reach the target 2 percent sometime next year.
Monday was light on economic reports, but the one that has been released from Japan was not positive for the yen. It showed that growth of the Services Producer Price Index slowed to 0.4 percent in June while experts promised it to stay at the May’s rate of 0.6 percent.
USD/JPY declined from 123.69 to 123.20 as of 16:54 GMT today. EUR/JPY climbed from 135.84 to 136.99. GBP/JPY traded closed to its opening level of 191.89 following the intraday drop to 190.99.
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