Euro nears historic high versus yen

Story link: Euro nears historic high versus yen

The US dollar was stronger during the week after the US core personal consumption expenditures deflator figures in August were higher than had been expected. The deflator, which is the Federal Reserve’s favorite measure of inflation, was at its highest annualized rate in eleven years. The greenback was 0.9 percent higher versus the euro, to $1.2661, while it added 1.3 percent in relation to the Japanese yen to ¥118.03.

The euro was higher against the yen once more even though the new finance minister in Japan scaled back his comments from earlier in the week to say Friday that the euro/yen relationship has been “a little bit volatile” recently. The euro, however, still ended the week 0.4 percent higher versus the Japanese currency at ¥149.45, near its historic high.

Sterling lost ground over the week after second quarter economic growth was revised lower and after a member of the Bank of England’s Monetary Policy Committee’s remarks. The week saw sterling drop 0.9 percent to £0.6790 in relation to the euro, while it declined 1.8 percent versus the US dollar to $1.8650.

Even though it lost some ground on Friday ahead of China’s National Day holiday next week, the renminbi was 0.2 percent ahead for the week at Rmb7.9165 to the dollar.