Japanese Yen Strengthens on Strong GDP Data
The Japanese yen strengthened past 152 per dollar on Monday, marking a third straight session of gains, as investors responded to strong economic growth data. Japan’s economy expanded 0.7% quarter-on-quarter in the fourth quarter, up from 0.4% growth in the previous quarter and beating estimates of 0.3%.
On an annualized basis, Japan’s GDP grew 2.8% in Q4, in line with expectations and up from 1.7% growth in Q3. The positive figures reinforced the Bank of Japan’s hawkish monetary policy outlook. While uncertainty remains over whether the BOJ will raise interest rates again in March, a further rate hike is widely anticipated later in the year. The yen also gained strength from broad-based U.S. dollar weakness, driven by weak U.S. economic data and easing concerns about a global trade war.
Source: Trading Economics
