Japanese Yen Gains despite Poor Japan GDP Data
In Tokyo trading today, February 16, 2009, the Japanese Yen gained against other major currencies after the G-7 finance ministers, at their weekend meeting, made no specific references to the strength of the Japanese currency. The Japanese Yen edged up, although the latest data showed that the Japan's economy shrunk sharply during the final quarter of last year, as investors felt that the numbers are reasonable and are within expected ranges. Japan's Gross Domestic Product fell by 3.3% in the 4th quarter of 2008, or an annualized 12.7%, the sharpest drop since 1974 during the first oil crisis.
According to an analyst from Nomura Trust and Banking, investors haven’t had any option except to unwind their risky leverage positions, given that the G-7 haven’t made mention of the Japanese Yen’s appreciation.
As reported at 2:14 pm (JST, Tokyo), the U.S. Dollar fell by 0.1% against the Japanese Yen to 91.75 Yen, from late trading in the U.S. on Friday. The “greenback” dropped to a low of 91.43 Yen, after the Gross Domestic Product announcement.
The Euro dropped by 0.8% against the U.S. Dollar and traded at $1.2760, while it fell by 1.1% against the Japanese Yen and traded at 11.70 Yen. The Pound Sterling fell by 0.8% against the U. S. Dollar to $1.4237.