Japan’s economy surprised economists, unexpectedly halting growth last quarter. Yet that did not bother the Japanese yen, which rose against its major rivals today.
Japan’s Cabinet Office reported that gross domestic product fell 0.2% in the first quarter of this year from the previous three months. Analysts had predicted no growth. At the same time, the annual GDP deflator rose 0.5%, beating forecasts of a 0.3% increase. Overall, economists thought that the contraction of GDP was temporary, therefore markets did not seem to be disturbed by the news.
USD/JPY fell from 110.34 to 110.11 as of 12:29 GMT today. EUR/JPY sank from 130.62 to 129.65.
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