The Japanese yen advanced today as the Tankan indices improved, suggesting that the measures to spur economic revival are working. The gains were limited though.
The Tankan manufacturing index jumped from 4 on the June quarter to 12 in the September quarter. The Tankan nonmanufacturing index rose from 12 to 14. The yen rose a little after the report, but the rally was relatively week and it is a surprise considering wide-spread risk aversion caused by the US government shutdown.
USD/JPY ticked down from 98.20 to 97.96 and EUR/JPY fell from 132.85 to 132.63 as of 15:48 GMT today.
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