Yen, US dollar weaken on data

The Japanese yen and the US dollar both lost ground Friday on continuing demand for higher-yielding currencies on indications that the global economy could be beginning to recover.

The Chinese Federation of Logistics and Purchasing reported that its Purchasing Manager’s Index was up to 53.5 in April, from 52.4 in March, indicating that manufacturing is expanding in China, while in the US the Institute for Supply Management’s manufacturing index was expected to show that contraction has eased in US manufacturing.

The yen was also hurt by new data showing that unemployment in Japan is up to 4.8 percent and prices other than for fresh food were down in March.

At just before 11 a.m. in New York, the yen traded at ¥131.5971 to the euro while it was at ¥99.29 to the US dollar, at ¥72.2162 to the Australian dollar and at ¥11.7422 to the South African rand, while the US dollar traded at $1.3254 to the euro and at 72.73 cents US to the Australian dollar while the rand traded at R8.4601 to the grennback.

The pound was higher on good news about manufacturing in the UK as well after the Chartered Institute of Purchasing and Supply reported that its manufacturing index was at 42.9.

In addition, the Bank of England reported that mortgage approvals in the UK totaled 39,230 in March, up from 37,716 in February.

In morning trade in New York the pound traded at 89.07p to the euro while it took $1.4881 or ¥147.753 to buy a pound.

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