Japanese yen is heading lower today, weakening across the board as the latest economic data comes in. Concerns that yen policymakers will need to continue to work to keep the yen weaker are on the rise right now as the latest data indicates the possibility of an economic slowdown, as well as concerns about what is next for the US economy.
According to the Ministry of Economy, Trade and Industry in Japan, industrial production rose to 1.5 per cent, rather than seeing an increase of 1.8 per cent. This measure of economic activity was somewhat disappointing, and could signal a slowdown in the economic recovery in Japan. Even though it appears that the unemployment rate is slightly lower and household spending is up, there are still worries about Japan’s economic recovery.
These worries are being reinforced by the latest concerns out of the United States. If the Federal Reserve continues to put of its tapering plans, the dollar could remain weak against the Japanese yen, and policymakers are worried that this state of affairs would lead to a stronger yen that would slow Japan’s recovery.
At 13:29 GMT USD/JPY is up to 98.2240 from the open at 98.1850. EUR/JPY is up to 135.0800 from the open at 134.9550. GBP/JPY is up to 157.8070 from the open at 157.5550.
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