Japanese yen is softer today, losing ground against its major peers, thanks to the latest economic data from the United States and to a surging Nikkei index.
Today, the Japanese yen is heading lower against its major counterparts as the need for safe haven diminishes, and as other forces take hold. The Nikkei is back above the 14,000 level for the first time in five weeks, and better economic data out of the United States is prompting hopes that the economy will continue to improve.
Indeed, the latest manufacturing data and construction data out of the United States show that things are improving for the US economy. As the world’s largest economy, and as Japan’s largest export market, what happens with the US economy matters a great deal. With signs of improvement, riskier assets are favored and the yen is heading lower.
Also keeping the yen somewhat weak is the ongoing stimulus effort from the Bank of Japan. The policies of Prime Minister Shinzo Abe, and his friend BOJ head Haruhiko Kuroda, are designed to keep the yen weak in an effort to boost the Japanese economy.
At 13:03 GMT USD/JPY is up to 100.2620 from the open at 99.6700. GBP/JPY is up to 151.9650 from the open at 151.6450. EUR/JPY is up to 130.3840 from the open at 130.1780.
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