The Japanese yen finished Monday mixed across the majors, gaining against the British pound, New Zealand dollar, Australian dollar and Canadian dollar while tumbling versus the euro, Swiss franc, and US dollar. Disappointing Japanese economic data keeps piling up as the nation saw its first current account deficit in 13 years. Indeed, the current account plunged to 172.8 billion yen in January due primarily to a 46.3 percent drop in exports from a year earlier, highlighting the plight of Japanese manufacturers who have had to grapple with a global economic slowdown and the appreciation of the Japanese yen. While the link between the Japanese yen crosses and risky assets like the DJIA has slipped, it shouldn’t be written off entirely as a strong bout of risk aversion could be enough to push the low-yielding currency higher.
[B]Related Article:[/B] Japanese Yen Weekly Trading Forecast
[B]For the day’s economic developments, check out Daily Fundamentals[/B].