Domestic Data & Market Sentiment Drive Yen Down

The Japanese yen fell today, driven down by both poor domestic macroeconomic data and the general market sentiment that was favoring currencies with higher yield, not safe ones.
Japan’s retail sales fell 2.1% in August year-on-year and 1.1% month-over-month. The drop was bigger than analysts’ had predicted. Meanwhile, the surprise agreement to cut oil production announced by the Organization of Petroleum Exporting Countries continued to bolster investors’ confidence, making them interested in high-beta currencies and feel no need to stockpile safe ones.
USD/JPY rose from 100.67 to 101.45 as of 16:09 GMT today. EUR/JPY advanced from 112.93 to 114.09.

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