Investing.com – The US dollar was traded against the Japanese yen during Thursday’s Asian session despite a solid Q1 GDP report for the world’s third largest economy.
Asian trading on Thursday fell 0.06% to 102.20. The pair was likely to find support at 101.26, Tuesday’s low and resistance at 102.61, the daily high.
Early Thursday, the Japanese cabinet office said the country’s GDP rose 3.5% in the first quarter, slightly exceeding expectations for growth of 2.7%. Perhaps more importantly, private consumption, which accounts for 60% of Japan’s GDP, accounted for 2.3% of the increase.
On a nominal basis, Japan’s GDP rose 1.5%, the best increase in a year. Japan’s first quarter GDP report is the latest sign that Prime Minister Shinzo Abe’s yen devaluation tactic is working.
On an annual basis, the yen is the worst performing currency in industrialized countries at 16% against the greenback and 14% against the euro. The yen’s rapid decline has boosted Japanese stocks, making them the best performers in Asia this year.
On Wednesday, Japanese government data showed that tertiary industry activity fell 1.3% in March, more than the expected decline of 0.6%, after a 1.2% increase in the previous month.
On US economic news, industrial production fell more-than-expected in April, down 0.5% after rising a revised 0.3% in March.
Separately, the U.S. Department of Labor said the country’s monthly producer price index fell 0.7% in April, beating analyst claims after a 0.6% decline and above the 0.6% decline in the previous month. The US is the largest oil consuming nation in the world.
Meanwhile, it fell 0.20% to 131.54 while it fell 0.09% to 101.14. rose 0.08% to 84.35.
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