The Japanese Yen retreated slightly against the Pound and weakened against the US Dollar due to the release of positive Japanese industrial data and as the markets turn their attention to next week.
According to the Japanese Ministry of Economy, Trade and Industry the final reading for Japans industrial production for July rose to a seasonally adjusted 3.4% beating economist forecasts which had predicted a non-mover from the 3.2% recorded in the month’s preliminary reading. The report showed that industrial production in the Asian country, which measures change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities, grew by 1.8 % on a year-on-year basis in July, up from the provisional reading of a 1.6%. Industrial production had declined by 3.1% in June.
The Ministry of Economy, Trade and Industry attributed the upward to the growth of textile production as well as the output of food and tobacco products, whose data were not available when it published the preliminary report on Aug. 30.
Weighing upon the Yen were comments made by Axel Merk of Merk Investments LLC. Merk warned that the Yen could weaken to ‘infinity’ against the US Dollar as the policies of the nation’s Central Banks diverge. The Bank of Japan looks set to continue with its huge quantitative easing programme whereas the US Federal Reserve is likely to start tapering its own policy before the end of September.
“The biggest fear that I have is that some of the policies we have are working, be it in the US or Japan, that means yields are going to spike, it means that we cannot afford government deficits. In Japan, it’s very clear that the Bank of Japan is going to jump in to put a lid on that, and there the Yen has to cave in” Merk said in an interview on Bloomberg radio.
The next data releases for Japan comes next Thursday when the latest trade data is released.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6722 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 157.6394 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.4643 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.1915 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.1938 >
(Correct as of 11:10 am GMT)