JPY Rises After US Economy Fails to Gain Traction

The yen rose against most of its major peers as weaker-than-forecast U.S. data added to signs of an uneven recovery in the world’s largest economy and investors sought safety.

The dollar fell to the lowest level in four weeks versus Japan’s currency after consumer spending, which accounts for about 70 percent of the U.S. economy, trailed estimates. Treasury yields and stocks declined. The pound rose as measures to cool the housing market were anticipated. New Zealand’s dollar climbed toward a record against the greenback as traders sought higher yield.

“The consumer has not been willing to open up their pocketbooks despite increased income,” said Michael Woolfolk, a global-markets strategist at Bank of New York Mellon in New York. “If all is normal in the marketplace, you have bad data, the stock market declines, the currency declines and that’s what we’re seeing today.”

The yen gained 0.2 percent to 101.67 per dollar at 12:21 p.m. in New York and touched 101.49. the strongest since May 30. The Japanese currency climbed 0.3 percent to 138.40 per euro. The dollar gained 0.1 percent to $1.3612 per euro.

Treasury 10-year yields fell for a third day, damping the allure of dollar-denominated assets. Yields dropped four basis points, or 0.04 percentage point, to 2.52 percent. The Standard & Poor’s 500 Index of stocks declined 0.4 percent.

via Bloomberg

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