Japanese Yen Hit by Weak Economic Data |
The Japanese economy has underperformed once again as Japan's leading index fell to 96.4 in April from 100.1 in March. Most analysts were expecting the index to fall to 96.5. As a result, the Japanese yen suffered losses in the Tuesday trading. The euro rose 0.694% to ¥117.56, while the dollar added 0.249% to its value to stand around ¥80.31.
The Japanese economy is struggling to shake off the effects of the earthquake and tsunami disaster that struck Fukushima. To add to investors' worries, the political situation remains unstable as the current prime minister recently announced he will leave his post early.
Bad economic results and political uncertainties might continue to eat into the value of the yen. Traders who believe in this scenario will be interested in the ProShares UltraShort Yen ETF (NYSE: YCS) and the ETFS Short Japanese Yen Long US Dollar ETC ETF (SJPY).
Other traders might believe the government reconstruction program in the Fukushima area will provide a boost to the country's economy and its currency.
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