The Japanese Yen weakened to a one-week low against the US Dollar and softened against the Pound after the US Federal Reserve’s latest policy meeting showed that many policymakers were still in favour of tapering the Central Bank’s $85 billion per month stimulus programme.
Also weighing on the Yen was the broad surge in the demand for the US Dollar in the wake of rising hopes that a deal could be made over the ongoing federal government shutdown and encroaching 17th October deadline for raising the debt ceiling.
In order to end the dispute President Barrack Obama demanded Republicans raise the borrowing limit and reopen the government before negotiations on future fiscal policy can take place. The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.
The US Dollar also continued to receive support from Wednesday’s announcement that President Obama had nominated Janet Yellen to take over the Federal Reserve upon the departure of Ben Bernanke on the 31st January 2014.
The overall Japanese economy however seems to be showing signs of benefiting from the weaker Yen. Data released in the early hours of Thursday morning show that machinery orders in Japan jumped to 819.3 billion Yen in August, the highest level since the start of the global slowdown in 2008.
“Capital Spending is on a recovery trend. Japan’s economic recovery is looking steady,” said economist Ninoru Nogimori from Nomura Securitites in Tokyo.
Current Japanese Yen (JPY) Exchange Rates:
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.7470 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 155.7983 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.0859 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.6973 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.1999 >
(Correct as of 10:15 am GMT)