The Japanese Yen has weakened against the US Dollar after upbeat data out of China and a decline in the chances for military action in Syria boosted appetite for riskier assets at the expense of the safe haven Yen.
Against the Euro the Yen tumbled to a seven week low as concerns over a strike against Syria eased and drew investors back into riskier higher-yielding assets which have suffered in recent days as concerns over geo politics caused uncertainty in the markets.
US President Barrack Obama has agreed to allow the Russians to try and negotiate with the Syrian Assad regime to surrender its stockpile of chemical weapons to the international community. An ideal solution for all parties involved as it would allow Obama to save face as the prospect of Congress voting against military action looks likely.
“The news about Syria has had an effect on risk sentiment, so we see the Yen and Swiss Franc under pressure,” said Marcus Hettinger, global FX strategist at Credit Suisse.
“We will likely see a further consolidation in the dollar which remains weak after last week’s softer payroll report. Markets will now look to next week’s Fed meeting.”
Data released from China also added to investor optimism that the global economy is on track to make a recovery. Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.9458
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 156.8714
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.4792
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.1927
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.4678
(Correct as of 11:35 am GMT)