The Japanese Yen has weakened against the US Dollar following reports in the Japanese media that Prime Minister Shinzo Abe is contemplating cutting corporate tax, as a result stocks jumped after sentiment was boosted by the sliding Yen.
The US Dollar is trading in the region of 97.857 against the Japanese Yen.
“The yen returning to the 97 level is positive and a corporate tax cut would be reflected on company earnings directly so its impact on the market would be huge,” said Toshihiko Matsuno, a strategist at Tokyo-based SMBC Friend Securities Co., a unit of Japan’s second-biggest lender by market value. “The US economy isn’t doing too badly and the dollar was sold off too much.”
The American currency extended its run of gains against the Yen after the Japanese media reported that Prime Minister Shinzo Abe is looking at the possibility of making a cut to the corporate tax as he tries to find a way of offsetting the impact of a planned increase to the country’s sales tax.
The Yen was dealt a reprieve from further declines after data showed Japan’s core machinery orders declined by 2.7% in June from the previous month. The figure beat economist forecasts for a decline of 7.2%. On a year by year basis orders jumped by 4.9% beating forecasts of a 2.6% increase.
The next major piece of economic data set to impact the Yen is not set to be released until the weekend when the Bank of Japan’s monetary policy meeting minutes for July are released.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.8570
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.2808
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.0415
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 78.2162
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 89.3268
(Correct as of 09:55 am GMT)