The Japanese yen slid today as the attractiveness of the currency was diminished by the report that showed decline of the nation’s economy. The yen was trading sideways against the dollar and the pound for the past several weeks. In fact, the currency has ended its major streak of gains in June. Against the euro, though, the yen continues to rise as today’s advance did not break the downward pattern.
Japan’s gross domestic product rose 0.3 percent in the second quarter from the first quarter, when it had expanded 1.2 percent. The expected increase was 0.6 percent. The major disappointment was consumer spending. As consumers become reluctant to spend, so prospects for economic growth weaken.
USD/JPY advanced from 78.26 to 78.37, but retreated to the opening level, and EUR/JPY rose from 96.18 to 96.64 as of 13:15 GMT today.
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