The Japanese Yen has strengthened against the US Dollar and many of its most traded peers on signs that the Asian nations economy is improving and as the markets take a risk off approach ahead of the end of the Federal Reserve policy meeting.
The Japanese government’s efforts to reignite the country’s long stagnating economy appear to be working as data released on Wednesday showed that employees saw their earnings increase and the number of new housing starts jumped higher.
Japanese workers saw their earnings increase for the first time in five months after companies gave out higher summer bonuses. Average monthly earnings rose by 0.1%.
“Corporate earnings have improved because of the Yen’s weakening and gains in stocks,’ said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance. “Abenomic’s is working to a certain degree.”
According to the land ministry housing starts for June jumped by 15.3% from the previous year; marking ten consecutive months of increases. Construction orders meanwhile leapt 21.9% as public spending was invested into a number of projects.
The figures show that the economic expansion the administration has helped engineer with stimulus spending and monetary easing has helped move some corporate profits to consumers’ wallets.
Against the US Dollar the Yen is trading close to its highest level in a month before the Federal Reserve announces its policy decision later in the session. Asian stocks fell ahead of the announcement sending investors to the safe embrace of the Yen.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.7683
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 148.7340
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.9049
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 78.1380
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 88.3405
(Correct as of 12:00 pm GMT)