Japanese yen is gaining ground today, heading higher against the dollar and making some inroads against the euro. Economic data out of Japan is having an effect as well.
The recent Bank of Japan decision not to adjust the current asset purchase program has provided a little respite for a weakening yen. However, the latest economic data, indicating lackluster performance, could prompt the BOJ to take the aggressive easing action it’s been threatening.
Household spending in Japan surged in March, but industrial production rose at a slower pace than expected. There are hopes that overseas demand for Japanese goods will rise as the yen remains somewhat weak, and the weaker currency makes goods denominated in the yen attractive.
For now, the yen is gaining against the US dollar, and making progress against the euro. There are concerns about the euro, and some Forex traders are interested in finding a stable alternative to the euro. That might provide some strength for the yen, even as Japanese officials work to keep the yen somewhat weak.
At 15:24 GMT USD/JPY is lower, heading down to 97.4995 from the open at 97.7530. EUR/JPY is still higher at 128.4550, up from the open at 128.0630, but off the high of 128.5050. GBP/JPY is up to 151.7200 from the open at 151.5250.
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