Currency News: Dollar Weakens Against Yen
The U.S. dollar was weakened against the yen this week, as the greenback traded off at 119.6 yen on Monday, which was a 0.6% decrease from Friday.
The reason for the increase value of the yen is a result from China’s 8.8% industrial profits fall in August. Worries about China’s economy has pushed investors to sell stocks and into currencies that would be seen as a safer bet such as the Yen. This has made Japan’s currency the best performing major unit of the quarter.
China’s fall also caused investors to move into haven assets amid a sell off in stocks and industrial commodities like oil and copper.
The Euro had a similar response as the dollar as it dropped only slightly less to the yen as it had .5% decrease against the yen, meaning the dollar lost insignificant ground to the Euro. As it stands now, the Euro is worth $1.12 and 134.97 yen.
All this had happened after US currency had strengthened in the previous week when Federal Reserve chairwomen Janet Yellen factors like the inflation outlook would warrant an interest-rake hike later in the year.
Attention will now turn to next Friday’s non-farm payrolls results, with a strong figure likely to reinforce calls for an early rate move.
