The Japanese yen is still going strong following Prime Minister Shinzo Abe’s earlier announcement that he will delay the sales tax hike that was planned for 2017 until October 2019.
Additionally, he said he will announcea new stimulus package in the fall.
The yen is stronger by 1.0% at 109.59 per dollar as of 12:30 p.m. ET.
As for the rest of the world, here’s the scoreboard:
- The People’s Bank of China fixed the Chinese yuan at its lowest level since 2011. The PBOC set the midpoint rate at 6.5889 per dollar. Wednesday’s fix was the third straight at a five-year low, and comes as Chinese manufacturing data showed more evidence the economy hasn’t yet stabilized.The South Korean won ended weaker by 0.1% at 1193.10 per dollar after South Korean exports – aka the world’s economic canary in the coal mine – fell 6% in May. Although that drop was an improvement from April’s 11.2% drop, it was significantly worse than the 0.4% drop economists were expecting.The euro is stronger by 0.3% at 1.1168 against the dollar after German, Italian, and Spanish manufacturing PMI came in below economists’ expectations. The Australian dollar is little changed at .7245 after the latest GDP reading showed that the country’s economy expanded by 3.1% in the first quarter compared to the previous year – the strongest pace since the third quarter of 2012. The British pound is down 0.5% at 1.4407 even though manufacturing PMI surprised on the upside. The latest reading came in at 50.1, above economists’ expectations of 49.6. TheUS dollar is weaker by 0.4% at 95.54 after several data points. The ISM manufacturing index came in at 51.3, beating the expectation for a slump to 50.3, which suggests that the sector continued to expand for the third straight month. However, several automakers reported huge drops in May sales.