Japanese Yen Climbs To 9-day High Against US Dollar
Japanese Yen Climbs To 9-day High Against US Dollar
During early Asian deals on Wednesday, the yen climbed to a 9-day high against the US dollar after a report showed that Japan’s core machinery orders, a closely watched indicator of corporate capital spending, rose more than economists expected in September. The yen also edged higher against its other major counterparts.
According to a report released today from the Cabinet Office, Japanese core machinery orders rose 10.5% from the previous month in September, due to strong demand from non-manufacturers and from overseas customers.
The rise was much better than the 3.2% mean increase expected by economists. Orders rose 0.5% in August and fell 9.3% in July, the Cabinet Office said.
The data showed that orders fell 22.0% in September compared with the same month the previous year.
The government said core machinery orders for the July-September period were down 0.9% from the previous quarter, but it expects machinery orders to rise 1.0% in the October-December quarter from the quarter before.
Today’s report suggests that Japanese companies are becoming confident enough to increase spending as their earnings recover since plunging in the first quarter of the year.
Buoyed by better-than-expected Japanese machinery orders data for September and the Dow’s jump to a 13-month closing high overnight, stocks moved higher in early trades today in Tokyo. However, the market has pared some of its gains subsequently.
The benchmark Nikkei 225 index, which rose to 9,949.7 in early trades, has drifted lower and is currently up 21.56 points, or 0.22%, at 9,892.
Against the US dollar, the Japanese yen edged higher during early Asian deals on Wednesday. At 7:10 pm ET, the yen reached a 9-day high of 89.49 against the dollar, compared to 89.82 hit late New York Tuesday. The next upside target level for the yen is seen around 88.6.
The Japanese unit that closed Tuesday’s North American session at 134.67 against the European currency climbed to 134.17 during Wednesday’s early Asian deals. The euro-yen pair is currently trading at 134.37 with 133.8 seen as the next target level.
Against the British pound, the Japanese currency traded higher during today’s early Asian deals. At 8:40 pm ET, the yen rose to 149.75 against the pound, compared to Tuesday’s closing value of 150.41. If the Japanese yen gains further, 147.8 is seen as the next target level.
The yen that closed Tuesday’s New York deals at 89.19 against the Swiss franc hit a high of 88.87 at 9:25 pm ET. On the upside, 88.0 is seen as the next target level for the Japanese currency.
In the European session today, the UK claimant count rate, jobless claims change, ILO unemployment rate and the BoE quarterly inflation report are due for release.
There isn’t any important economic report to be released from U.S. on Wednesday due to the ‘Veterans Day’ holiday.
