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Japanese Yen weakens further as industrial output data lags

30 March, 2015

Investing.com 

 

The yen weakened further Monday in Asia after initial industrial production figures fell more than

expected and as investors eyed an interest hike in the U.S. later rather than sooner this year. 

In Japan, industrial production is up for February with showed a provisional fall of 3.4%, well below the

1.8% drop expected. 

USD/JPY traded at 119.28, up 0.11%, while AUD/USD changed hands at 0.7726, down 0.39%.

EUR/USD eased 0.16% to 1.0873. 

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six

major currencies, was quoted at 97.78, up 0.17% in early Asia. 

Last week, the dollar ended lower against a basket of other major currencies on Friday as a lukewarm

report on U.S. economic growth and comments by Federal Reserve Chair Janet Yellen weighed. 

The Commerce Department reported Friday that the U.S. economy expanded at an annual rate of

2.2% in the fourth quarter, unchanged from the preliminary estimate and below economists' forecasts

for an upward revision to 2.4%. 

Another report showed that the final reading of the University of Michigan's consumer sentiment index

ticked down to 93.0 this month from a final reading of 95.4 in February. 

The dollar showed little reaction after Fed Chair Janet Yellen struck a cautious note on interest rates.

In a speech, the Fed chief said a rate hike may be warranted later this year, but added that weakening

inflation pressures could force the Fed to delay. 

The speech echoed the Fed's latest policy statement, released on March 18, which indicated that it

may raise interest rates more gradually than markets had expected. 

In the week ahead, investors will be focusing the U.S. employment report for February, due out on

Friday and Monday's data on personal spending for further indications on the path of monetary policy.

Tuesday's euro zone inflation report will also be closely watched.