The Japanese yen fell today, demonstrating the weakest performance among the major currencies, despite the better-then-expected inflation report. Analysts blamed the risk-on market sentiment for the decline.
The Tokyo core Consumer Price Index rose 1.1% in January, year-on-year, while economists had predicted the same 0.9% rate of growth as in December. Released yesterday, the Nikkei Flash Japan Manufacturing PMI showed a drop to 50.0 in January from 52.6 in December, whereas experts had predicted it to stay about unchanged. The neutral 50.0 level means that the sector stopped expanding, ending the longest expansionary run for over a decade.
USD/JPY edged up from 109.63 to 109.78 as of 10:19 GMT today. EUR/JPY rose from 123.93 to 124.39.
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Japanese Yen Declines Even as Inflation Beats Expectations
