Yen reaches three-year high amid downbeat US and EU data
On Tuesday, the major Japanese currency acted strongly against its key rivals during Asia trade. The yen managed to reach its three-year high against the common currency, as market participants looked for safety due to pessimistic economic reports from the USA and the Eurozone.
The yen luckily strengthened against the euro, which fell to ¥122.08 early in the morning during Tokyo trading session. That’s the lowest value since April 2013. Later on, the common currency leapt back to ¥122.54.
The evergreen buck dipped to ¥112.16 before hitting ¥112.66 midday, compared to ¥112.74 late Thursday.
The overall market sentiment remained quite bruised. To be exact, that wasn’t good at all.
An evident decline in the EU inflation overnight powered expectations that later this month, the ECB would take extra measures, in particular easing.
In America, a sudden contraction in the Chicago Business Barometer, also dubbed the Chicago PMI, dragged down the greenback’s upside momentum.
Even after China’s decision late on Monday to decrease the reserve-requirement ratio for banks, the Shanghai Composite Index climbed up 0.4%.
Meanwhile, the Nikkei Stock Average surged 0.1% late afternoon in Tokyo.