Japanese Yen Drops as USA Make Concessions to China

The Japanese yen traded broadly lower today after the news that the United States made some concessions to China in the trade talks. Japan’s macroeconomic data was unable to support the currency.

The market sentiment improved after US President Donald Trump twitted about helping China’s ZTE Corporation. ZTE Corp is a Chinese multinational telecommunications equipment and systems company. The company was selling US goods to Iran illegally, which prompted the US Commerce Department to forbid American companies to sell goods to the firm.

The Bank of Japan reported that the Producer Price Index rose 2.0% in April from a year ago. The increase was almost the same as the 2.1% growth registered in March, and it was in line with market expectations.

USD/JPY rose from 109.25 to 109.57 as of 14:25 GMT today. EUR/JPY jumped from 130.46 to 131.19, touching the daily high of 131.37. GBP/JPY rallied from 147.92 to 148.89.

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