Yen declines on US retail sales numbers

Story link: Yen declines on US retail sales numbers

The yen declined against most major currencies on Wednesday after new data showed that US retail sales gained 0.3 percent in January despite analyst expectations that they would decline by 0.3 percent.

The jump in retail sales lessened worries that the US would fall into recession and drag the global economy with it, sending investors in search of risky carry trades finances with low-yielding currencies such as the yen.

At nearly noon in New York, the yen traded at ¥108.2100 to the US dollar, at ¥157.6077 to the euro, and at ¥212.2268 to the pound.

The return to carry trades also sent the Swiss franc lower versus the euro and the pound, with the franc trading at SFr1.6131 to the euro and at SFr2.1722 to the pound.

The pound gained on the euro after the Bank of England said that inflation in the UK will likely exceed 3 percent despite slowing growth.

The prediction is based on the assumption that UK interest rates will drop to 4.5 percent by the end of the year.

In addition, new jobless claims in the UK were reported to have dropped by 10,800 in December, twice the predicted decline.

It took 74.26p to buy a euro in midday trade in New York, while it took $1.9612 to buy a pound.

The US dollar gained on the euro to trade at $1.4565 to the shared currency.