USD/JPY below 102 after Kuroda’s Comments on Economic Recovery

The yen climbed against all major peers after data on China’s manufacturing fell short of analyst estimates, spurring demand for safer assets.

The yen reached a two-week high against the dollar after Bank of Japan Governor Haruhiko Kuroda said in an interview with CNBC television that the nation’s economic recovery is on track, damping expectations the BOJ will add to monetary stimulus. The dollar remained lower following weekly declines against peers, with Federal Reserve Chair Janet Yellen due to testify to lawmakers this week amid speculation the U.S. central bank will keep rates near zero.

“The actual figure is a few ticks below expectations,” Sacha Tihanyi, a Hong Kong-based senior currency strategist at Scotiabank, said of the Chinese data. “It’s not a good dynamic and you’re probably seeing a bit of weakness in some currencies on the back of the data, with dollar-yen and the Aussie lower.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.