The Japanese yen fell today as industrial production declined last month, increasing possibility of additional monetary easing from the central bank. Losses were limited as unemployment shrank more than was expected.
According to the preliminary report, industrial production contracted as much as 3.3 percent in June on a seasonally adjusted basis, compared to the predicted decline of 1.4 percent. Such data gives incentive for the Bank of Japan to pursue accommodative policy. The unemployment rate edged down by 0.2 percentage point to 3.9 percent in June, while analysts have predicted a drop by just 0.1 percentage point.
USD/JPY rose from 97.93 to 98.16 as of 8:21 GMT today, while its daily high was at 98.45. EUR/JPY went up from 129.89 to 130.29.
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