The Japanese yen fell today, retreating from the highest level in almost three years against the euro, even though poor manufacturing data from China, both official and private, was detrimental to investors’ risk appetite.
Both official and private Caixin reports showed that China’s manufacturing sector continued to deteriorate in February. While the news has had some impact on markets initially, it was short-lived, and now traders feel no particular need for the safety of the yen. As for economic indicators of Japan itself, they were mixed to negative with the surprise drop of the unemployment rate but also with the bigger-than-expected decline of household spending and the fall of the manufacturing index.
USD/JPY was up from 112.67 to 113.07 as of 14:15 GMT today, bouncing from the daily low of 112.15. EUR/JPY rose from 122.51 to 122.93, rebounding from the low of 122.06 — the weakest rate since April 2013.
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