Yen falls as investors move towards dollar and sterling
The yen fell against a host of currencies yesterday, as investors moved towards riskier assets and consumer confidence rose to its highest rate for eight months to 54.9. The dollar rose 0.4% against the yen with sterling following suit, rising to a four month high of 152.53 yen; both the euro and Australian dollar also pulled back ground against the yen.
Data released earlier this week showed that Japan’s trade balance surplus was 69 billion yen, compared to the expectation of a 57.5 billion yen shortfall. Chief economist for the Norinchukin Research Institute, Takeshi Minami said: “It’s another sign that the worst for Japanese exports is over,”
But cautiously added, “But the global economy is still hurt, so a sharp rebound is unlikely. For Japanese companies, severe conditions will continue.”