The yen rose against all of its 16 major peers as reports showing a weaker-than-forecast European gross domestic product and an unexpected decline in U.S. industrial production fueled concern about the pace of economic growth, increasing demand for Japan’s currency as a haven.
The 18-nation euro fell earlier to the lowest level in 11 weeks after European Central Bank Vice President Vitor Constancio said policy makers are prepared to add further monetary stimulus, if needed. Japan’s currency rallied as the nation’s first quarter economic growth exceeded forecasts, while stocks declined on the weak U.S. manufacturing report and Treasuries rose as traders reversed bet a growing economy would boost interest rates. India’s rupee rallied to the highest in more than nine months before election results. A measure of global foreign exchange volatility rose to the highest level in two weeks.
“It feels a little bit of a risk-off scenario,” Fabian Eliasson, head of U.S. currency sales in New York at Mizuho Financial Group Inc., said in a phone interview. “Reading into the data, it remains a risk for U.S. GDP growth.
The yen climbed 0.5 percent to 101.43 per dollar at 11:58 a.m. New York time, reaching the strongest level since March 19. The Japanese currency rose 0.5 percent to 139.11 per euro. The shared European currency was little changed at $1.3713 after it weakened to $1.3648, the lowest level since Feb. 27.
via Bloomberg
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019