Yen declines against its peers, Asian stocks gainThe yen fell against most other major currencies as Asian stocks gained, reducing demand for Japanese assets as a haven.
The dollar rose to the highest in more than a week versus the yen and traded near the strongest in a month against the euro before a report today forecasted that U.S. retail sales would increase for a third month.
Australia’s dollar fell before the release of the annual budget today and following data showed industrial production and retail sales growth slowed in China, the South Pacific nation’s biggest trading partner.
“Risk appetite boosted by stocks gains triggered yen selling,” said Junichi Ishikawa, an analyst at IG Markets Securities. “The China data had some dampening effect on the Aussie, although the declines have been limited.”
The yen slid 0.1 percent to 102.27 per dollar as of 7:16 a.m. in London, after earlier touching 102.33, the weakest since May 2. It fell 0.2 percent to 140.74 per euro. The dollar was little changed at $1.3761 per euro, after reaching $1.3745 on May 9, the strongest since April 8.
The MSCI Asia Pacific Index of stocks rose 1.1 percent. Japan’s Topix index jumped 1.8 percent.
U.S. retail sales probably incre?ased 0.4 percent in April, according to the median estimate of economists polled by Bloomberg News.
They grew 1.2 percent in March, which was the most since August 2012.
“Should U.S. retail sales data come in strong and cause yields to rise, that would propel dollar gains against the yen,” said Yujiro Goto, a senior currency strategist at Nomura International in London. “Dollar strength is in the process of being confirmed.”
Japan’s current-account surplus narrowed more in March than forecast, a Ministry of Finance report showed.
with the Korea JoongAng Daily
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