Although the Yen declined yesterday on speculation that it could weaken further if Japanese investors continue to turn to foreign assets, the Asian currency has since recouped losses recorded against its US rival as gold prices enjoyed a rebound.
The Japanese Yen exchange rate was in the region of 99.1800 Yen to one US Dollar as of 10:35 am GMT
The news that China’s gross domestic product expanded by less than expected in the first quarter of this year caused commodities to crash and the price of gold to tumble by 16 per cent within a week.
Since then the price of gold has been steadily moving away from the lows recorded following the Chinese data release.
Yesterday the precious metal was able to advance by 9 per cent as its relative price increased in the face of US Dollar weakness and as Russian and Kazakhstan central banks increased gold purchases, and the Yen has strengthened as a result.
The Yen also benefited from government data revealing that, for a sixth week, Japanese investors reduced their holdings of overseas bonds.
Early in to the European session the Yen strengthen to 99.22 against the US Dollar, down from 99.54 yesterday.
Following the publication of American durable goods orders the US Dollar fell against the majority of its most traded peers.
The data showed a slump of 5.7 per cent in the orders of goods designed to last for more than three years. As economists had forecast a drop of just 3 per cent, the result increased the likelihood of central banks maintaining present stimulus measures for the foreseeable future. Consequently, the appeal of higher-risk assets rose and the safe-haven ‘Greenback’ declined.
Considerable Yen movement could occur in the aftermath of the Bank of Japan’s rate decision. It will be the central bank’s second major announcement since Haruhiko Kuroda took over as Governor.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.1800 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 153.2030 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.7820 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 84.8262 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.4670 >
(Correct as if 10:35 am GMT)
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