The Japanese yen rallied today despite unfavorable macroeconomic data and warnings from Japan’s officials about possible interventions in order to stem the currency’s rally.
Japan’s current account surplus shrank to â¥â1.41 trillion in May from â¥â1.63 trillion the month before. Yet this did not prevent the currency from rising. The rally is frustrating for Japanese policy makers who want to see the yen weaker, meaning that they may intervene in currency markets or perform additional monetary easing.
USD/JPY fell from 100.77 to close at 100.45, the lowest settlement since November 2013. EUR/JPY declined from 111.47 to 111.02.
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