The Japanese yen endured losses during the first trading session of the third quarter, dropping near its three-week low against the world's reserve currency as big manufacturers expressed the strongest confidence in more than two years, Bloomberg reports.
The currency of the Pacific Rim nation fell after the Tankan survey, administered by the Bank of Japan, demonstrated manufacturers; confidence is at highest since March 2011. The globe's third-largest economy is poised to continue growing during the next 12 months, according to the Bank of Japan.
"The improvement in big firms' sentiment was largely driven by yen weakness, which supported exports, and the recovering economy overall," senior economist Taro Saito with NLI Research Institute in Tokyo told Reuters on Monday. "The BOJ probably doesn't need to act immediately."
Gauging big manufacturers' sentiment, the Tankan survey climbed to 4 during the April-through June period, marking its top level since the end of the first quarter of 2011.
Next week will see policy makers with the Bank of Japan meet to discuss interest rates, according to Reuters. The Tankan survey is likely to be a factor influencing discussion and policy.
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