The yen is raring to go again. Despite Japanese Finance Minister Taro Aso’s warnings that the government would intervene to stabilize exchange rates, and after sliding 2% as a result of the rebuke, the yen is refusing to stay down and climbed 0.6% against the dollar. With total gains this year over 10%, the yen’s rise is making it difficult for Japan’s central bank to achieve its goals for inflation. For some analysts, the yen’s ascent is looking like a marathon rather than a more sustainable sprint.
After a strong rally over the past several days, the dollar fell for a second day against a basket of major currencies as a result of a bout of profit-taking and the Japanese yen’s ascent. Meanwhile, the euro has risen 0.2%.
The pound had three days to catch its breath, but has weakened overnight against the euro and dollar on the back of data that UK industrial production grew less than expected, at 0.1% rather than the anticipated 0.3%. It’s not the only area that is worried about growth. Faced by an environment of sluggish global growth, there is a risk-off attitude developing for stocks, and investors are looking wary about the prospect for riskier assets in the near term.
EURUSD: Euro is up on the back of a weaker dollar.
GBPUSD: The pound is taking a hit from disappointing industrial production data.
AUDUSD: Aussie dollar down as it continues to absorb the impact of its central bank’s decision.
USDCAD: With oil prices down, the loonie is seeing some weakness.