Japanese yen is heading lower today, dropping against its major counterparts, as Japanese investors purchase overseas bonds and as the data out of China turns out to be better than expected.
The Japanese yen is lower across the board today as risk appetite makes a serious comeback and as Japanese investors send their money overseas. With Asian stocks surging, and the Nikkei closing above 14,000, it is little surprise that there isn’t a lot of interest in buying yen right now.
Japan’s Ministry of Finance reports that Japanese investors bought the equivalent of $2.4 billion in overseas bonds for the fourth week in a row. With Japanese investors putting their money elsewhere — using yen to buy assets denominated in other currencies — the yen weakens in Forex trading.
It’s also not help the yen that risk appetite is sending Forex traders and others looking for yield. World stocks are rallying today, following the latest economic news out of China. The China Federation of Logistics and Purchasing reports that the PMI for China moved up to 50.3 from the last reading of 50.1, rather than dropping to 49.8. This unexpectedly good news is driving risk and weighing on the yen.
At 13:31 GMT USD/JPY is up to 98.8885 from the open at 97.8970. EUR/JPY is up to 131.1530 from the open at 130.2110. GBP/JPY is up to 150.3800 from the open at 148.8695.
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