Yen edges up as gloomy US indicators quash rate lift bets
On Wednesday, the Japanese yen earned after gloomy American economic data made a US interest rate lift this month unreal, thus prompting traders to trim their greenback bets and also triggering stop-loss orders in early Asian trade.
The greenback tumbled 0.5%, trading at 101.50 yen having dropped as low as 101.245 earlier, its lowest outcome since August 26 and quite below Friday's peak of 104.32 yen. It sank more than 1% against its Japanese counterpart on Tuesday.
The previous month, the Institute for Supply Management's non-manufacturing purchasing managers' index edged down to 51.4, far short of economists' hopes and the largest one-month dip since November 2008, giving the Fed reason to delay its interest rate lift.
Besides this, in August, the Federal Reserve's labor-market conditions index sagged, falling back into negative territory after a positive outcome in July.
Also bolstering the Japanese yen was the Sankei newspaper's report telling that Bank of Japan policymakers were divided ahead of the major bank's September 20-21 gathering, at which the board will carry out a comprehensive assessment of its massive stimulus program.