Japanese Yen rebounds from 30 month low on U.S. Dollar profit-taking

At 12:33 p.m. JST, the Japanese Yen took an upturn, rebounding sharply from a 3-month long low versus the U.S. Dollar, and making gains against most major currencies, while speculators benefited from profit-taking on the U.S. Dollar after its run against the Yen.  The Japanese Yen had lost nearly 11% versus the U.S. Dollar since it touched on a 13 year high last month; likewise, it lost nearly 10% versus the Euro, and the slide deepened after the release last week of poorer than expected GDP numbers and the Japanese finance minister’s resignation.

The U.S. Dollar lost 1.2%, trading at 97.33 Yen; during yesterday’s trading, it hit a high of 98.72 Yen.  The Euro also lost ground, falling 1.3% to 123.84 Yen; yesterday, it peaked at 126.09 Yen, a 7-week high.

Analysts and investors alike said that Friday’s report on the Japanese economy confirmed their suspicion that the Japanese economy – the second largest in the world – is engulfed in the worst slump in more than six decades, since the end of the Second World War.  According to the report, consumer inflation slowed nearly to zero last month, and industrial production fell 10% in January from December’s figure.