CANBERA (dpa-AFX) - The Japanese yen strengthened against other major currencies in the European session on Monday, as the recent economic data added the possibility that the Bank of Japan (BoJ) will raise its interest rates in September.
Data from the Ministry of Economy, Trade and Industry showed that industrial production in Japan was up a seasonally adjusted 0.1 percent on month in July. That beat expectations for a decline of 0.7 percent following the 1.9 percent gain in June.
On a yearly basis, production was up 4.1 percent.
Data released by the Japanese Ministry of Finance showed that the retail trade in Japan rose 4 percent year-on-year in July, also beating expectations of a 3.0 percent increase.
Data from the Ministry of Land, Infrastructure, Transport, and Tourism showed that the Japan's housing starts increased for the fourth straight month in July. Housing starts climbed 8.2 percent yearly in July, though slower than the 18.6 percent surge in June. The expected growth rate was 7.9 percent.
The seasonally adjusted annualized housing starts dropped to 774,000 in July from 786,000 in June.
European stocks traded lower amid escalating tensions between Washington and Tehran around the Strait of Hormuz.
The Iranian Army launched dozens of destructive drones at the locations of U.S. helicopters and forces stationed at the AI Minhad airbase in the United Arab Emirates in retaliation for the martyrdom of the personnel of the Islamic Revolution Guards Corps and innocent Iranian compatriots on Larak Island.
In the European trading today, the yen rose to near 2-week highs of 184.92 against the euro, 216.08 against the pound and 197.31 against the Swiss franc, from early lows of 185.56, 216.80 and 197.97, respectively. If the yen extends its uptrend, it is likely to find resistance around 180.00 against the euro, 212.00 against the pound and 193.00 against the franc.
The yen edged up to 159.48 against the U.S. dollar, from an early low of 160.12. The yen may test resistance around the 157.00 region.
The yen advanced to nearly a 2-week high of 94.33 against the NZ dollar, from an early low of 160.12. On the upside, 92.00 is seen as the next resistance level for the yen.
Against the Australia and the Canadian dollars, the yen advances to 4-day highs of 114.21 and 114.80 from early lows of 114.64 and 115.20, respectively. The next possible upside target for the yen is seen around 112.00 against the aussie and 113.00 against the loonie.
Looking ahead, German CPI data for August, U.S. Dallas Fed manufacturing index for August and U.S. Chicago PMI for August are slated for release in the New York session.
U.K. stock markets remain closed in observance of Summer Bank holiday.
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