LONDON: The yen rose on Tuesday in Asia after an upward revision to the Japanese growth rate lessened speculation for additional easing steps by the Bank of Japan.
Broad falls in Asian stocks following sharp drops in crude oil overnight also contributed to gains in the Japanese currency, a perceived safe haven asset.
Data released Tuesday showed Japan’s gross domestic product grew 1.0% in the third quarter from the prior three-month period on a seasonally adjusted annualized basis, compared with the previous estimate of a 0.8% contraction.
“BOJ easing expectations fell. That was the initial trigger, followed by stock weakness,” said Akira Moroga, manager of forex products group at Aozora Bank.
Drops in China’s exports and imports in November also kept investors cautious.
The dollar fell to Y123.15 as of 0400 GMT from Y123.38 late Monday in New York, according to EBS. The Australian dollar dropped to Y89.14 from Y89.67. The euro was at $1.0850, compared to $1.0837.
