US Dollar Rebounds From 18-Month Low Against Yen

The US Dollar rallied from an 18-month low against its Japanese counterpart in overnight Asian trading. The greenback rebounded from yesterday’s low after Federal Reserve Chair Janet Yellen reiterated her commitment to gradual rate hikes for the remainder of this year.

Some mixed data releases from Japan overnight were overshadowed by upbeat jobs data from the US yesterday. The soft data from Japan provided support to the US Dollar amid oil and stocks tumbling.

Japanese Household Confidence Data

In a report issued by the Cabinet Office, official data showed on Friday that Household confidence in the world’s third largest economy increased more-than-expected last month. Japanese Household Confidence increased to a seasonally adjusted annual rate of 41.7, up from the 40.1 recorded in the preceding month. This came after analysts had been expecting Japanese Household Confidence to post an increase to just 40.5 for last month.

Economy Watchers Index

In a separate report issued by the Cabinet Office, official data showed on Friday that Japan’s economy watchers current index came in below market expectations last month. Japan’s Economy Watchers Current Index increased to a seasonally adjusted figure of 45.4, up from the 44.6 recorded in the preceding month. Although an increase, the figures came after analysts had been expecting the Japanese Economy Watchers Current Index to show an increase to 46.5 for last month.

At time of writing, the US Dollar was up 0.49% against the Japanese Yen, trading at 108.75. Meanwhile, Japan’s Nikkei 225 closed down 0.46%.

The following two tabs change content below.

Daniel Simmons