Yen weakens on data, risk chances

Story link: Yen weakens on data, risk chances

The yen was weaker Friday as Japan’s unemployment rate was reported at 5.7 percent in July and as consumer prices dropped 2.2 percent from last year.

While the yen recovered slightly as the session progressed on a new US consumer confidence report, the new data on jobs and deflation seemed to point toward a greater possibility that the ruling Liberal Democratic Party will lose Sunday’s elections in Japan.

In late morning trade in New York, the yen traded at ¥134.4186 to the euro while it was at ¥93.515 to the greenback and traded at ¥78.9156 to the Australian dollar on speculation that demand for risky investments will grow.

The euro was helped by a gain in Eurozone business and consumer sentiment, which stood at 80.6 in August, higher than analysts had expected.

At nearly 11:30 a.m. in New York it took $1.4274 to buy a euro.

The pound was a bit stronger in early trade, but by late morning in New York it had given back some of its gains to trade at 88.15p to the euro while at the same time it took $1.6305 to buy a pound.

Meanwhile, the Canadian dollar traded higher at C$1.0838 to the US currency as US equities markets and oil prices saw gains.