The Japanese yen fell against its major peers (though not against the euro) during the Friday’s trading session due to prospects for monetary tightening from the Bank of Japan. The unexpected drop of manufacturing index was not helpful to the currency either.
The Nikkei Flash Japan Manufacturing Purchasing Managers’ Index ticked down to 52.4 in January from 52.6 in December while experts had promised an increase to 52.8. Meanwhile, analysts continue to speculate that pressure to expand monetary stimulus is mounting on the BoJ. It is characteristic that the yen was on a par with the euro, which has also suffered from the outlook for stimulus.
USD/JPY rallied from 117.69 to 118.15 as of 12:37 GMT today. At the same time, EUR/JPY traded at 127.85 after opening at 127.96.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.