USD/JPY Above 105 on Signs Economy is Losing Momentum

The yen was near the lowest in almost six years versus the dollar as Japanese reports showing a slump in business spending and a shrinking current-account surplus added to signs the economy is losing momentum.

The pound slid at least 0.4 percent versus all its 16 major counterparts after a poll showed the campaign for Scottish independence in front for the first time, stoking concern the 307-year union forming the U.K. will splinter. The Australian and New Zealand dollars fell before Chinese reports today that economists said will show export growth slowed in August.

“The collapse of Japan’s previously large current-account surplus is the main medium-term driver behind a weaker yen,” said Joseph Capurso, a currency strategist at Commonwealth Bank of Australia in Sydney. “The larger fall in business spending is particularly disappointing.”

Bloomberg

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