The Japanese yen fell today amid the improving market sentiment, poor domestic macroeconomic data, and the negative outlook for monetary policy. But the losses were extremely small, perhaps due to some good news about the US-Japan trade negotiations.
The Jibun Bank Flash Manufacturing PMI dropped to 48.9 in September from 49.3 in August. That is instead of rising to 49.5 as analysts had predicted. The Flash Services Business Activity Index fell to 52.8 from 53.3. A reading above 50.0 indicates expansion, while a reading below 50.0 means a contraction.
Bank of Japan Governor Haruhiko Kuroda signaled that the central bank is ready to ease its already extremely accommodative monetary policy if necessary. He said:
BOJ has become more keen to ease than before as risks to economy is heightening.
While all the negative news hurt the yen, the silver lining for the currency were comments from Japanese officials, who voiced hope that a trade deal between Japan and the United States will be achieved by the end of the month.
USD/JPY rose from 107.53 to 107.71 as of 9:21 GMT today. EUR/JPY edged up from 118.21 to 118.44. GBP/JPY went up from 133.65 to 134.08.
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