The Japanese yen increased in value on Monday against the world's reserve currency, prompted higher by concerns about an economic slowdown in China, according to Reuters.
Japan revealed on Monday its currency account deficit surged to a record high in January. Beginning on Monday, officials with the Bank of Japan are convening for two days of policy meetings, yet the body is likely to leave policy unchanged.
"Fundamentally speaking, data out of the U.S. has a bigger underlying market impact, but the psychological effect from Chinese economic indicators cannot be overlooked," President Koji Fukaya with FPG Securities in Tokyo told the news service on Monday. "The rise in yields after the upbeat U.S. data supports the dollar, but the latest indicators out of China dampen risk appetite and may foil the currency's advances against the yen."
The greenback and the common currency of the European Union edged down about 0.2 percent against the yen on Monday.
The Pacific Rim nation slashed economic growth estimates for the fourth quarter of this year to 0.7 percent from 1 percent, The Globe and Mail reports.
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