Monday during Asian deals, the Japanese yen fell to a 4-day low against the euro, franc, pound, Australian dollar, Canadian dollar and the New Zealand dollar as a rebound in equities boosted investors' risk appetite. Additionally, bleak economic reports from Japan aggravated the weakness of the yen.
The stock markets across the Asia-Pacific region were trading higher today with investors getting back into the buying mode, picking up stocks after Friday's severe setback Japan's benchmark Nikkei 225 index, which had slid by over 3% on Friday, is currently trading up 246.5 points or 2.71% at 9,328.
A surge in equities exerted downward pressure on the yen as investors see yen as a safe-haven in times of economic uncertainty. Usually, there is an inverse relationship between yen and stocks. When there is a stock market surge yen falls and vice-versa.
A government data released today showed that Japan's industrial production rose less than expected in October. The Ministry of Economy, Trade and Industry said in a preliminary report that industrial output in Japan was up 0.5 percent on month in October, posting a seasonally adjusted index score of 89.9 and rising for the eighth consecutive month. That was sharply lower than analyst expectations for a 2.5 percent increase following the 2.1 percent gain in September. On an annual basis, output fell 15.1 percent after the 18.4 percent contraction in the previous month.
Another report said that Japan November manufacturing PMI fell to a four-month low. Markit Economics announced that the Nomura/JMMA Japan Manufacturing Purchasing Managers' Index stood at a seasonally adjusted 52.3 in November, down from 54.3 in the previous month. A reading above 50 indicates expansion, while one below 50 suggests contraction. This marks a four-month low in the index.
The Japanese yen weakened against its Swiss counterpart during trading on Monday. At about 8:30 pm ET, the yen touched a 4-day low of 86.81 versus the franc, compared to 85.98 hit late Friday in New York. The next downside target for the yen is seen around the 87.98 level.
The yen dipped to a 4-day low of 130.84 against the euro by about 8:30 pm ET, compared to 129.42 hit late Friday in New York. If the yen slides further, 132.3 is seen as the next likely target level.
In the European session, French producer prices for October, UK October mortgage approvals, Eurozone and the Italian consumer price reports for November are due out.
Against UK's sterling, the yen declined to a 4-day low of 143.97 during today's early Asian session. The pound-yen pair closed last week's deals at 142.42. The next downside target for the Japanese currency is seen around the 148.4 level.
An index measuring consumer confidence in the United Kingdom was down for the first time in a year in November, the GfK/NOP survey revealed today. The index came in with a score of -17, well below expectations for a -11 following the -13 in October. It remained well above last year's score of -35, however.
Another report said that house prices in the United Kingdom were up 0.2 percent on month in November, property Web site Hometrack said, matching October's gain and rising for the fourth straight month overall. On an annual basis, home prices declined 2.9 percent after the 4.2 percent contraction in the previous month.
The yen showed mild strength against the US dollar during Monday's early Asian session. However, by about 5:20 pm ET, the Japanese currency lost ground and is now worth 86.65. The dollar-yen pair closed Friday New York session at 86.50.
Across the Atlantic, the results of the U.S. National Association of Purchasing Management-Chicago's business survey for November are scheduled to be released at 9:45 am ET. The business barometer index based on the survey was at 54.2 in the previous month.
The yen also weakened against commodity related currencies during early trading. The yen slumped to a 4-day low against the Australian dollar and the New Zealand dollar and touched 79.72 and 62.63, respectively. The yen was worth 78.45 against the Aussie and 61.49 against the kiwi at Friday's close.
Against the Canadian currency, the yen touched a 4-day low during today's early trading. The yen hit a low of 82.33 by about 8:30 pm ET, and if it falls further, it may find immediate resistance around the 83.65 level. The loonie-yen pair closed last week's deals at 81.38.
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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.