The Japanese yen rose Japanâs Finance Minister Taro Aso signaled that there will not be tax cuts, increasing demand for the currency as a safe haven. Good macroeconomic data helped the currency too.
The finance chief said that he is not considering corporate tax cuts. Meanwhile, economists speculate that Prime Minister Shinzo Abe will announce a sales tax hike next week. Aso also said that he is reluctant to issue new debts for additional monetary stimulus.
The yen jumped on the comments and on the positive inflation report. The currency even managed to outperform the sterling which itself was very strong.
USD/JPY was down from the opening of 98.95 to the closing price of 98.22. EUR/JPY fell from 133.47 to close at 132.81.
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