Growing China’s Economy Saps Demand for Safety of Yen

The Japanese yen together with other safe currencies, including the US dollar and the Swiss franc, weakened against most major currencies today as the robust growth of China’s economy reduced investors’ demand for safety.

China’s consumer prices inflation accelerated to 5.5 percent from 5.3 percent last month according to the National Bureau of Statistics. The industrial production grew 13.3 percent in May, following the 13.4 percent growth in the month before. The Producer Price Index remained at 6.8 percent, while forecasts warned that it may retreat to 6.6 percent.

EUR/JPY traded at 115.83 as of 10:32 GMT after it climbed from 115.63 to 116.42 today. USD/JPY was slightly down from 80.20 to 80.18 after rising to 80.45.

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