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Japanese Yen Stumbles on Weak Economic Data

By DailyForex.com
As reported at 8:56 a.m. on March 9, 2009 in London, the Japanese Yen fell broadly as more gloomy Japanese economic data intensified concerns about the extent of the severity of the economic downtur, while declines in the equity market caused the Euro to fall against the U.S. Dollar. facing

This past January, Japan experienced a current account deficit, for the first time in 13 years, as the global recession seriously affected income from overseas investment and export demand. A deepening economic downturn in Japan has made its currency less attractive to investors as a so-called “safe haven” currency, taking the U.S Dollar back to within the 100 Yen level.

Meanwhile, the U.S Dollar gained versus the Euro as fragile equity markets left the Euro struggling to reverse recent sharp declines, which pushed it to its lowest mark versus the U.S. Dollar in three months or more last week.

At 08:44 GMT in London, the U.S. Dollar gained 0.3% against the Japanese Yen and traded at 98.67 Yen; meanwhile, the Euro also gained 0.2% against the Japanese Yen and traded at 124.59 Yen. Versus the U.S. Dollar the Euro fell by 0.1% to $1.2627.

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