The Japanese currency weakened against most of its 16 major counterparts. The pound rose from almost a one-month low versus the dollar as U.K. inflation accelerated to the highest level since 2008, increasing pressure on the Bank of England to raise interest rates. The New Zealand dollar fell versus the greenback as stocks and commodities declined.
“It’s clear that the economy is facing a lot of issues on the supply side, which will weigh on growth and lead to weakening in exports,” Aroop Chatterjee, a currency strategist at Barclays Plc in New York, said of Japan. “On the monetary policy side, it’s unclear what steps will be taken in the short term to jump-start the economy.”
The yen weakened 0.7 percent to 81.37 per dollar at 11:46 a.m. in New York, from 80.79 yesterday. It fell as much as 1.2 percent, the biggest intraday decline since April 27. The Japanese currency depreciated 0.6 percent to 115.03 per euro, from 114.37 yen. The euro fell 0.2 percent to $1.4135, compared with $1.4156 yesterday.
The pound rose as much as 0.7 percent to $1.6304 after touching $1.6147 on May 13, the lowest since April 5. It later traded little changed at $1.6198. Sterling was 0.2 percent stronger at 87.28 pence per euro. Britain’s legal tender bought 131.82 yen, 0.8 percent more than yesterday.
1 comment:
The 3.7% retraction in the japanese economy was quite a surprise as analysts were looking at about a 2% dip. It will be interesting to see what steps are taken to improve the situation there.
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