Yen Falls Following PM Shigeru Ishiba Comments
03 October 2024 - 11:43AM
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The Japanese yen weakened against other major currencies in the
Asian session on Thursday, after Japan's newly appointed prime
minister said that the nation is not prepared for additional rate
hikes, following a meeting with the central bank governor.
Traders reacted to Japan's newly appointed Economy Minister's
comments that the central bank should be careful about raising
rates again as it takes time to completely exit deflation.
According to reports, the Japan's Prime Minister Ishiba stated,
"I do not believe that we are in an environment that would require
us to raise interest rates further,"
Meanwhile, traders remain cautious amid the escalating tensions
in the Middle East following Iran's ballistic missile attack
against Israel.
In economic news, the services sector in Japan continued to
expand in September, albeit at a slower pace, the latest survey
from Jibun Bank revealed on Thursday with a services PMI score of
53.1. That's down from 53.7 in August, although it remains above
the boom-or-bust line of 50 that separates expansion from
contraction. The data also said the composite PMI slipped to 52.0
in September from 52.9 in August.
Since the beginning of this week, the safe-haven yen has been
losing ground to its main competitors.
In the Asian trading now, the yen fell to 6-day lows of 162.49
against the euro and 195.18 against the pound, from yesterday's
closing quotes of 161.77 and 194.31, respectively. If the yen
extends its downtrend, it is likely to find support around 168.00
against the euro and 200.00 against the pound.
The yen edged down to more than a 2-month low of 173.00 against
the Swiss franc, from Wednesday's closing value of 172.33. On the
downside, 176.00 is seen as the next support level for the yen.
Against the U.S., Australia, the New Zealand and the Canadian
dollars, the yen slid to nearly a 1-1/2-month low of 147.24, more
than a 2-month low of 101.28, a 6-day low of 91.93 and a 1-month
low of 108.97 from yesterday's closing quotes of 146.46, 100.82,
91.71 and 108.46, respectively. The next possible downside targets
for the yen is seen around 151.00 against the greenback, 104.00
against the aussie, 91.71 against the kiwi and 110.00 against the
loonie.
Looking ahead, Switzerland CPI data for September is due to be
released in the pre-European session at 2:30 am ET.
In the European session, PMI reports from various European
economies and U.K. for September and Eurozone PPI data for August
are slated for release.
In the New York session, U.S. weekly jobless claims, Canada and
U.S. PMI reports for September, U.S. factory orders for August are
set to be released.
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