USD/JPY down to 99.60 as Machinery Orders Stagnate

The yen strengthened for a second day against the dollar after Japan’s machinery orders stagnated in July and amid concern a sales-tax increase will hamper economic growth, boosting demand for the currency as a haven.

The euro fluctuated against the U.S. currency after weakening on a report that showed industrial output in the 17-nation region contracted in July. Australia’s currency weakened against all its major counterparts after a government report showed employers unexpectedly cut payrolls for a second month. The New Zealand dollar advanced as the central bank signaled it may raise interest rates next year from a record low.

“The stronger yen stems partly from the potential of further stimulus measures being introduced by the Japanese administration,” Brian Daingerfield, a Stamford, Connecticut-based currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit, said in a telephone interview. “The future of Japan’s fiscal policy is driving the yen today.”


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