The Japanese Yen made a comeback today against the US dollar, as investors continued to unwind their carry trade positions.
Japan’s Tertiary Industry Index fell more than expected, with major spending declines in the real estate sector, followed by deterioration in the financial and insurance sectors. In contrast, Japan’s leading Economic Index and Coincident Index figures came in strong, for the first time in seven months, leaving investors feeling hopeful about a revival in the near future. In spite of figures indicating growth, Japanese government officials cut its regional economic assessment for the first time in six years, due to weak corporate activity, indicated by declining business sentiment and capital investment. Looking ahead, Merchandise Trade balance figures are expected to increase due to strong demand for exports and also Consumer Price data.