The Japanese yen ended its rally and dropped today after growth of China’s manufacturing and fears of an intervention from Japan’s policy makers reduced the appeal of the currency.
Deputy Economy Minister Yasutoshi Nishimura said that a drop of the currency below the 100 per dollar level would not be a problem. Such comments made traders think that the downside pressure on the yen will not end anytime soon. Meanwhile, China’s Purchasing Managers’ Index rose, beating analysts’ expectations. The positive macroeconomic news allowed riskier currencies, including the New Zealand dollar, to gain on JPY.
USD/JPY climbed from 88.60 to 89.59 and EUR/JPY advanced from 117.99 to 119.33 as of 10:10 GMT today.
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