2008.12.2522:49:00UTC+00Yen Reverses Recent Losses Against Majors

The Japanese yen that edged down against its major counterparts in early Friday Asian trading reversed direction around 7:55 pm ET.

The Japanese stock market was trading higher today as investors shrugged off a series of dismal economic data, including industrial production data for November that recorded its biggest ever drop. At 8.08 P.M. ET, the benchmark Nikkei 225 Index was up 77.68 points, or 0.90%, to 8,677.18 and the broader Topix Index of all First Section Issues was gaining 3.37 points to 839.39.

Japan's industrial production declined by a seasonally adjusted 8.1% month-on-month in November, showing a decrease for the second consecutive month, a preliminary report from the Ministry of Economy, Trade and Industry said. On a yearly basis, production declined 16.2% in November. Economists had predicted a monthly decline of 6.8% and annual fall of 15%.

Meanwhile, the Ministry of Internal Affairs and Communications said that Japan's consumer price annual inflation, excluding fresh food was 1% in November, while economists were expecting a rate of 1.1%,. In October, the index rose 1.9%. The ministry said the general consumer price index climbed at a slower pace of 1% in November from the previous year. Economists were predicting an annual inflation of 1.1%. From the previous month, the index fell 0.9% in November.

The Statistics Bureau said in a report that the Japanese jobless rate rose to 3.9% in November from 3.7% logged in October. However, the jobless rate stood below the expected rate of 4%.

Against the currencies of US and Europe, the yen fell to 90.85 and 127.28 by about 7:55 pm ET Thursday. Thereafter, the Japanese currency bounced back and it is currently worth 90.52 against the dollar and 126.80 against the euro. If the yen gains further, it may likely target 89.6 against the dollar and 126.1 against the euro.

The yen advanced against the pound after hitting a low of 133.94 at 7:55 pm ET Thursday. As of now, the pound-yen pair is worth 133.40 with 132.3 seen as the next target level.

The yen dropped to 84.36 against the Swiss franc before reversing direction at 7:55 pm ET Thursday. Currently, the franc-yen pair is trading at 83.80. The next upside target level for the Japanese currency is seen at 83.1.

Back to news list