The Japanese Yen declined against Pound Sterling and the majority of its most traded peers despite the release of data showing that Japanese manufacturers were optimistic for the first time in two years as Prime Minister Shinzo Abe’s policies aid exports.
According to the Bank of Japan the quarterly taken Tankan Index for large manufacturers rose to a plus four in June from the minus eight recorded in March. A positive number means that pessimists are outnumbered by optimists.
“Companies are becoming pretty confident about the economy’s outlook,” said Yoshiki Shinke, chief economist at the Tokyo based Dai-ichi Life Research institute. “They still have scope to revise upward their profit forecasts and capital investment plans.”
GDP in Japan has grown by an annualized 4.1% in the first quarter of the year and is expected to continue to expand into the second quarter of 2014.
Countering the improving confidence data was the release of the latest year on year Japanese vehicle sales. Since 2012 the number of vehicles sold has tumbled from -7.3% to -15.8%. Economists shrugged off the disappointing data in favour of the confidence report.
The Pound strengthened against the Yen after the latest UK Purchasing Manager Index jumped to a two-year high as mortgage approvals jumped in May, supporting the belief that the UK’s economic recovery is on track.
Against the US Dollar, traders are predicting that the Yen will trade around the 91.20 per Dollar in the fiscal year ending 2014, contrasting with the former prediction of 85.22.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.5767 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.5636 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.8580 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 77.2233 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.3019
(Correct as of 10:40 am GMT)