Yen Resumes Decline
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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Earlier News About the Japanese Yen:
- Yen Rallies Even as BoJ Introduces Open-Ended QE Program (2013-01-22)
- Yen Advances as BoJ Starts Meeting (2013-01-21)
- Another Bad Week for Yen Ahead of Policy Decision (2013-01-19)
- Anticipation of Intervention Continues to Drive Yen Down (2013-01-18)
- Yen Drops, Rebound Is Possible (2013-01-17)