The yen rose against the greenback on the last day of the trading week, as the US dollar dropped from its five-year high in spite of the string of positive data released from the world’s largest economy.
The Japanese yen edged 0.46% higher at 104.31 yen at the time of writing. The yen was poised ending the first week of the year, rising as much as 0.9% against the US dollar at the time of writing.
The EUR/JPY currency pair was seen lower, as the Japanese yen rose 0.58% higher to ¥142.38 against the euro. The session opened at around ¥143.30, the yen dropped to ¥142.07 later during the day.
Last year the Japanese yen dropped by 24.6% against the US dollar, marking its largest annual drop since 1979 and worst annual performer among its peers.
Japan’s Prime Minister Shinzo Abe started to follow the ‘three arrows policy’ targeted at reviving and sustaining the economic growth of the country.
Japan is expected to increase its sales tax from 5% to 8% by April and to 10% by next year. The central bank are predicted to ease its monetary policy further, as market analysts forecast the nation’s yen will decline throughout 2014.
USD/JPY – US Dollar
A string of data’s were released from the world’s largest economy, from the US jobless claims which revealed a better-than-expected results and the Manufacturing Purchasing Mangers’ Index (PMI), which expanded in December for the seventh consecutive month in a row.
The data’s was driven by the outlook that the Federal Reserve (Fed) would begin to taper its $75 billion monthly bond purchases this year.
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