The yen rose toward the strongest in seven weeks as speculators reduced bearish bets on the currency and government data showed Japan’s gross domestic product expanded for a third-straight quarter, reducing scope for the Bank of Japan to add stimulus.
The 17-nation euro was supported before a report which may show industrial production in the currency bloc rebounded. The Bloomberg U.S. Dollar Index was close to the lowest in nearly seven weeks. Australia’s dollar dropped against all of its 16 major counterparts.
“GDP is one piece of data that can impact the yen,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. (WBC) in Sydney. “A stronger number should weigh on dollar-yen because it would make the prospect of further BOJ easing less likely.”
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.