Yen Gains as China’s Growth Unexpectedly Slows

The Japanese yen strengthened today as unexpected slowdown of China’s economic growth spooked Forex market participants and increased demand for assets that offer safety.

The National Bureau of Statistics reported that Chinese gross domestic product grew 7.7 percent in the first quarter of 2013 after expanding 7.9 percent in the previous three months. The data frustrated analysts who have expected 8.0 percent growth. The Japanese currency managed to show strength by the end of last week and the report from China helped the yen to extend its rally. Yet many economists believe that the advance will be short-lived and the currency will challenge new lows soon.

USD/JPY fell from 98.17 to 97.83 and EUR/JPY ticked down from 128.75 to 128.03 as of 13:13 GMT today.

If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *