The Japanese yen fell for the second trading session against the euro and the Great Britain pound today. The currency has also dropped for three days versus the US dollar but paused the decline at the start of the Friday’s session.
One of the reasons for the yen’s drop is the fact that fears caused by China’s stock market collapse subsided, making traders less interested in safety of the Japanese currency. Another reason is the Friday’s economic data from Japan. Japan’s core inflation stalled and household spending fell in July.
The negative macroeconomic indicators pressure the Bank of Japan to ease its already extremely accommodative monetary policy even further. Indeed, BoJ Governor Haruhiko Kuroda said earlier this week that he would not hesitate to add economic stimulus in case of necessity. And the prospect for monetary easing is very harmful to the yen.
USD/JPY traded at 120.96 as of 3:31 GMT today, close to its opening level of 121.00. Meanwhile, GBP/JPY rose from 186.31 to 186.80 and EUR/JPY advanced from 136.02 to 136.24.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.