Forex: USD/JPY continues descent – at 2-week low

Written by: Violina Todorova
July 26, 2013 Friday July 26th:_ The yen has continued its current uptick against the US dollar during today’s European session, with the pair falling to a two-week low at 98.47, shedding 0.77 percent intraday so far.

The boost came from the latest update of Japan’s Consumer Price Index, which has come out this month as a rise of 0.2 percent y/y, after the prior month’s negative 0.3 percent growth and recording the highest monthly gain since June 2008. The number is an encouraging sign that the world’s third-largest economy may finally be starting to escape from deflation.

Core-CPI, which excludes fresh food pricing, increased to a seasonally adjusted rate of 0.4 percent, up from June’s flat reading and above expectations for a rise to 0.3 percent.
The yen was also supported against the dollar yesterday by a fall in Asian and European equities, boosting demand for safe-haven currencies. The USD/JPY recorded its highest exchange rate for the day at 100.40 and a low at 98.87, dropping 1.53 percent in the day.

Japan’s Foreign Bond Investment data for last week came out yesterday, showing that resident investors bought ¥549.3 billion worth of foreign bonds during the week, as against the prior week’s ¥1.1056 trillion – the largest outlay since September 2012.
Foreign investors bought ¥349.8 billion of Japanese stocks last week, down on ¥398.2 billion from the prior week.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.