Japan Yen Drops on China’s Better PMI | Finance Brokerage
The Japanese yen fell to a six-month low on Monday. This followed as the market welcomed the good news from China’s manufacturing sector.
The safe-haven currency was down 0.2% to 109.72 per dollar, registering its lowest since May. The yen was last trading at 109.64 per dollar.
Riskier currencies, on the other hand, strengthened after two surveys signaled optimism in Chinese factory activity.
The New Zealand dollar took the lead, gaining 0.8% to 70.87 against the yen, reaching its highest since August.
The kiwi also rose 0.6% to 0.6465 against its US counterpart to mark as its strongest in a month.
Elsewhere, the pound declined 0.1% to 1.2910 against the greenback. A set of surveys indicated a huge reduction in the Conservative Party’s lead over the Labor Party.
Japanese Yen Stumbles as China’s PMI Improves in November
China’s factory activity unexpectedly grew to its fastest rate in nearly three years in November. Which supported positive government figures released on the weekend.
Survey data released by a private sector on Monday showed the country’s purchasing manager’s index (PMI) expanded to 51.8 last month from 51.7 in October.
That was the quickest growth since December 2016, when manufacturing PMI climbed at 51.9.
The survey also revealed upbeat levels in total new orders and factory production.
However, chief China economist Larry Hu said the improvement might be at risk of getting struck as several brief tailwinds subside, which includes a better sentiment on a trade agreement and warm weather.
Beijing has cautioned that it would enforce firm countermeasures in response to US President Donald Trump’s decision to sign a bill supporting protestors in Hong Kong.
China has not yet provided further details regarding the issue.
The trade-sensitive Australian dollar, which was on track for its largest gain in two weeks, rose 0.3% to 0.6787 per US dollar.
The potential of a more monetary easing in China and the lack of a concrete update on trade kept the yuan steady at 7.0418 against the greenback.
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