The Japanese yen slumped to new multi-day lows across the board on Wednesday morning in Asia as a surge in Asia-pacific stocks prompted traders to buy high-yielding assets. However, the yen recouped some if its losses shortly.
The low-yielding currencies like the yen fell with the jump in equities as investors sell them to invest in riskier assets.
The Asian stock markets are trading notably higher today with the overnight positive close on Wall Street. Japan's Nikkei 225 Index is currently adding 103 points, or 1.04%, to 10,036. Among other markets in the Asia-pacific region, Malaysia, Australia, New Zealand and Taiwan are trading notably higher, while Singapore and South Korea are trading flat.
In economic news, an index measuring domestic corporate goods prices in Japan was up 0.3 percent in January compared to the previous month, the Bank of Japan said today. That was higher than analyst expectations for a 0.1 percent increase following the revised flat reading in December. On an annual basis, the corporate goods price index was down 2.1 percent.
Core machinery orders in Japan spiked 20.1 percent in January compared to the previous month, the Cabinet Office said today. That was sharply higher than analyst expectations for an 8.0 percent monthly gain following the record low 11.3 percent contraction in November. On an annual basis, orders were down 1.5 percent.
The yen that plunged to a 6-day low of 84.64 against the Swiss franc and 124.3 against the euro around 7:30 pm ET recovered some of its losses thereafter. Currently, the yen is quoted at 84.37 against the franc and 123.82 against the euro and this may be compared to yesterday's closing values of 84.35 and 123.77, respectively.
Against the pound, the yen reached a 5-day low of 141.48 around 7:30 pm ET Tuesday, compared to Tuesday's New York session closing value of 141.03. The pound-yen pair is presently quoted at 141.02.
The euro gained yesterday amid reports that the European Union may be coming to the rescue of debt-ridden Greece. In hopes of containing the debt crisis that many fear could spread to Portugal, Spain, and Italy, the European Union is meeting on Thursday in Brussels.
European Central Bank President Jean-Claude Trichet cut short a visit to Australia today, fueling speculation that an aid package for Greece is in the works.
The yen edged slightly higher after hitting a 6-day low of 90.03 against the US dollar around 7:30 pm ET Tuesday. Currently, the greenback-yen pair is quoted at 89.83, compared to 89.71 hit late New York Tuesday.
The yen that slipped to a 6-day low of 79.14 against the Australian dollar at 7:30 pm ET Tuesday reversed its course thereafter. Currently, the aussie-yen pair is trading near yesterday's closing value of 78.83.
Consumer confidence in Australia declined in February for the third time in four months, according to survey results published today by Westpac Bank and the Melbourne Institute. The group's consumer sentiment index declined 2.6 percent to a reading of 117 points.
The Australian Bureau of Statistics reported today that the number of home loans extended in Australia in December declined by a seasonally adjusted 5.5 percent in December.
The yen also reached a 6-day low of 62.72 against the New Zealand dollar and 84.47 against the Canadian dollar before recovering slightly around 7:30 pm ET. The yen is currently trading near yesterday's closing values of 62.48 against the kiwi and 84.21 against the loonie.
Traders are now looking forward to the European session, in which, the French current account and Industrial production reports-both for the month of December are scheduled to be released.
From the U.S., the Department of Commerce will release its trade balance report for December at 8:30 AM ET.
Philadelphia Federal Reserve Bank President Charles Plosser is scheduled to deliver a speech on financial crisis in Philadelphia at 12:45 PM ET.
At 2:00 pm ET, the US monthly budget statement for January will be made public.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.