Japanese Yen Fails to Capitalize on Upbeat Tankan Survey

The Tankan survey released today showed that business conditions for Japan’s large enterprises improved in both manufacturing and non-manufacturing sectors last quarter. Yet the Japanese yen failed to capitalize on the favorable data.

The Tankan Large Manufacturers Index climbed from 12 in the March quarter to 17 in the June quarter, exceeding the median forecast of 15. The Tankan Large Non-Manufacturing Index rose from 20 to 23, though it was a bit below the average forecast of 24.

Yet the Japanese currency did not pay attention to the report, probably still being under pressure from the outlook for extremely accommodative monetary policy in the foreseeable future.

USD/JPY rose from 112.10 to 112.94 as of 10:15 GMT today. EUR/JPY rallied from 127.98 to 128.46.

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