Friday morning in Asia, the yen edged down against most major currencies after a report showed that Japan’s consumer prices dropped for the 20th straight month in October. The yen tumbled to a 3-day low against the pound, more than a 7-week low against the U.S. dollar and a fresh 2-month low against the Canadian dollar.
The Ministry of Internal Affairs and Communications said core consumer prices, which exclude fresh food from the price basket, dropped 0.6% year-on-year last month, slowing sharply from the 1.1% fall in September. The C.P.I. came exactly in line with analyst expectations.
On a month-over-month basis, Japanese consumer prices rose 0.4%, following no change in September.
On the equity front, after a flat start and a subsequent sharp move up north on the back of a weaker yen, the Japanese stock market pared its gains today with investors treading cautiously at higher levels and taking some profits.
Bank stocks moved higher in early trades, lifting the benchmark Nikkei 225 index up by over 50 points. However, due to strong resistance at higher levels, most of the stocks in the banking space have shed a good portion of their early gains.
The Nikkei, which surged to 10,134.6 but drifted down into the red subsequently, is currently up 9 points or 0.09% at 10,088.8.
The yen declined to more than a 7-week low of 83.89 against the U.S. dollar in early Asian deals on Friday. If the yen drops further, it may likely target the 85.9 level. As of now, the dollar-yen pair is worth 83.81, compared to yesterday’s close of 83.61.
During early Asian session on Friday, the yen slipped to a 3-day low of 132.14 against the pound. The next downside target level for the Japanese currency is seen at 133.8. The pound-yen pair that closed yesterday’s trading at 131.78 is now worth 132.05.
The yen weakened to 83.89 against the Swiss franc in early Asian deals on Friday. On the downside, 84.1 is seen as the next target level for the Japanese currency. The franc-yen pair is currently worth 83.81. The pair closed yesterday’s trading at 83.59.
In early Asian deals on Friday, the yen fell to a new 2-month low of 83.15 against the Canadian dollar. The next downside target level for the yen is seen at 84.1. The loonie-yen pair is presently worth 83.05, compared to Thursday’s closing value of 82.83.
Looking ahead, French consumer spending and Eurozone M3 money supply data – both for October and the Swiss KOF leading indicator for November are slated for release in the upcoming European session.
There are no significant economic reports due out in the North American session today.