Forex: USD/JPY descends on falls in Japanese foreign bond investments

on Jul 25, 2013
Listen Thursday July 25th:_ Since finishing the Asian session at the ongoing intraday low of 99.60, the pair has continued to trade down mid-way through European trading.

Japan’s Foreign Bond Investment data for the week ended July 19 was released at 00:50 BST today, showing that resident investors bought ¥549.3 billion of foreign bonds, as against the prior week’s ¥1.1056 trillion – the largest amount since September 2012. With three consecutive weeks of higher purchases than sales, July looks set to be the first month of net foreign bond buying in six months.

The numbers suggest that Japanese investors are increasingly venturing offshore to seek better returns with the Bank of Japan’s aggressive monetary easing policies hitting returns at home.
The Bank of Japan caught financial markets unawares on April 4, with its decision to inject $1.4 trillion into the country’s money supply in less than two years.
According to the release, foreign investors bought ¥349.8 billion of stocks last week, down on the prior week’s ¥398.2 billion.