Dollar/Yen Soars to 3-Week High as Japan’s Economic Woes Deepen

The dollar/yen continues to rise since the start of daily trading, driven by pressure from economic data and statements from the central bank that lean toward quantitative easing, in contrast to the direction taken by Japanese monetary authorities.

The pair climbed to 150.69 compared to the previous daily close of 148.58. It recorded its lowest level in the first trading day of the current week at 149.32, against a high of 150.75. The Japanese yen faced pressures that pushed it to its lowest levels in three weeks following the release of negative economic data, shedding light on a state of weakness affecting the Japanese economy.

The Manufacturing Purchasing Managers’ Index (PMI) issued by Jibun Bank Japan fell to 48.3 points in March, marking its lowest level in a full year. Bank of Japan Governor Kazuo Ueda stated that the central bank would adjust the pace of quantitative easing if the outlook for Japan’s economy achieves its price target.