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Yen Fell to 98.80 against the Dollar on Bond Flows & Chinese PMI Data

Posted by Chris Advincula on Aug 1, 2013 7:19:00 AM

Aug  1 Thursday 11:20 GMT        

LONDON – The Japanese Yen fell against all of its major counterparties as Japanese investors sent funds into foreign denominated bonds for a fourth week and as the Asian stock market rallied on the better than expected Chinese manufacturing data. Nikkei rose 337.45 points to 14,005 (+2.47%) in Tokyo.

Japanese investors purchased 233.2 billion yen ($2.4 billion) in overseas bonds and notes in the seven days ending July 26 according to a report from the Ministry of Finance in Tokyo.

Dollar Yen rallied to 98.80 from 97.70 while Euro-Yen rose to 130.95 from 130.00.

Bank of Japan Governor Haruhiko Kuroda back in April unveiled a plan to buy more than 7 trillion yen of Japanese debt a month to spur the economy and to end deflation. He said the policy would encourage domestic investors to diversify their investments by purchasing foreign bonds and other assets.

 

Chris Advincula

WorldWideMarkets

 

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Charts: WorldWideMarkets Flash Trader

 

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