Yen, USD weaker, pound gains on manufacturing data

Story link: Yen, USD weaker, pound gains on manufacturing data

The Japanese yen and the US dollar both weakened Friday as investors continued to purchase higher-yielding currencies as new reports indicated that the global economy might be beginning to recover from the recession.

The Chinese Federation of Logistics and Purchasing reported that its Purchasing Manager’s Index was up to 53.5 in April, from 52.4 in March, indicating that manufacturing is expanding in China.

Meanwhile in the United States, the Institute for Supply Management’s manufacturing index, due to be released later in the day, is expected to show that while manufacturing remains in contraction in the US, it contracted less in April than it did in March.

The yen also declined on new data showing that unemployment in Japan is up to 4.8 percent and prices other than for fresh food were down in March.

At just before 11 a.m. in New York, the yen traded at ¥131.5971 to the euro while it was at ¥99.29 to the US dollar, at ¥72.2162 to the Australian dollar and at ¥11.7422 to the South African rand.

The US dollar traded at $1.3254 to the euro and at 72.73 cents US to the Australian dollar while the rand traded at R8.4601 to the grennback.

The pound was higher on good news about manufacturing in the UK as well after the Chartered Institute of Purchasing and Supply reported that its manufacturing index was at 42.9.

Additionally, the Bank of England reported that mortgage approvals in the UK totaled 39,230 in March, up from 37,716 in February.

In morning trade in New York the pound traded at 89.07p to the euro while it took $1.4881 or ¥147.753 to buy a pound.