Japanese yen fell against the European currency on Thursday against a basket of world currencies to deepen its losses for the fourth day in a row against the USD, hitting a six-month low as the US currency continued to climb against most major and minor currencies, as well as weak investment demand for safe haven assets , And the Japanese government’s tendency to weaken the currency, especially with the Chinese yuan falling to a one-year low.
USD rose against the Yen by more than 0.3% at 08:15 GMT, trading at 112.35, the opening price at 111.99, the highest at 112.42 since January 10, 2018 and the lowest at 111.91.
Japanese yen ended yesterday’s 0.9% lower against the USD, its third consecutive daily loss, and the biggest daily loss since March 28, as the US currency rose and the yuan fell.
The dollar index hit a one-week high of 94.55 on Thursday, reversing the greenback’s rally against a basket of major and minor currencies, especially after the Federal Reserve raised interest rates two more times this year.
Those expectations rose after better-than-expected US producer prices in June, and these prices are the leading consumer prices released later in the day. If confirmed, these prices will once again boost those prospects.
Chinese yuan fell on Wednesday to its lowest level since August 2017 against the US dollar, amid growing trade disputes between China and the United States, a sign of the Chinese government’s focus on weakening the currency during this period, warning of a currency war soon.
In this context, the Japanese government is also likely to weaken the local currency of the yen, which is now confirmed as the yen continues to fall broadly against most of the world’s currencies, especially against the US dollar.