Yen Shows a Downturn Against The Dollar

USD YEN

The yen dropped to a three-week low against the USD, where the central bank’s Tankan survey presented large manufacturers were the most confident in two years, curbing demand for the safety of Japan’s currency.

The yen plunged against all of 16 main currencies, where Japanese stocks progressed, and the Bank of Japan expected the economy will keep increasing until the second quarter of 2014. The euro jumped to the most in almost three weeks against the USD after manufacturing in the region contracted less in June than economists’ expectations. Sweden’s krona got stronger for a third day as a gauge of factory output rose.

The yen dropped 0.5% to reach 99.63 per USD at 7:09 a.m. in New York after depreciating to 99.72, the weakest level seen since June 5. Japan’s currency decreased 0.8% to reach 129.98 per euro after dropping to 130.06, the least since June 11. The euro increased 0.3% to reach $1.3046, the biggest gain seen since June 11.

The Tankan index of sentiment amid large manufacturers progressed to 4 in the second quarter, the highest seen since March 2011, from minus 8 in the past period, the central bank said. Readings over zero mean optimists be more numerous than pessimists.