The Yen weakened its position against its major peers strictly before statistics forecast to show Japan’s economy decrease for the third quarter, as tack on to signs that world’s third- largest economy is staying behind the U.S. and China.
The Japanese currency popped a two-day gain against the euro after which reports recorded unexpected growth of China’s industrial production and retail sales. In the meantime while Asian stocks experienced losses, Australia’s dollar promoted its positions. Following the European Union officials announcement that Greece will not possibly receive the expected funding till late November, brought forward demand for EUR.
According to the announcement of Hans Kunnen, the chief economist at St. George Bank Ltd. in Sydney, he predicted the fast weakening of Yen, while Japanese economy is not stable, which makes not reasonable the purchase of JPY.
The 0.4 percent fall of JPY against 101.66 per euro at 2:48 p.m. in Tokyo from 101.30 yesterday, pared its weekly advance to 1.5 percent only. At the same time it lost 0.1 percent to the position of 79.53 per USD. At the same time EUR also lost its position by 0.3 percent to $1.2783 coming to $1.2717, which is the lowest point since September 7.
According to Bloomberg Analytics News survey report due on November 12, Japan domestic products annual gross rate for the three months through September 30 is only 3.4 percent
Masashi Murata, a currency strategist in Tokyo at Brown Brothers Harriman & Co., mentions this as a three-way stand off for USD, JPY and EUR, so far it is less possible for JPY to gain against USD or EUR, taking into consideration that Japanese economy still experiences hard times.