Japan’s economic growth rate turned negative again in the third quarter.
Japan’s Cabinet announced that real gross domestic product and GDP growth fell 0.8% in the third quarter from the previous quarter.
These figures amount to minus 3.0% in annual conversion.
Japan’s GDP growth rate turned positive from -1.1% in the first quarter to 0.4% in the second quarter, but turned negative again in a quarter.
This result was attributed to a drop in personal consumption, which accounts for more than half of GDP, due to the Japanese government’s emergency that took effect this summer as the worst spread of COVID-19 continued.
Personal consumption in the third quarter recorded negative 1.1% compared to the previous quarter, and exports also fell 2.1% as auto cuts continued due to the global semiconductor recession.
The yen exchange rate started slightly higher than the first half of the $1 = 114 yen range on the 15th as yen purchases and dollar purchases preceded concerns over the U.S. economic slowdown.
In the Tokyo foreign exchange market, the yen exchange rate rose 0.03 yen from 5 p.m. on the 12th to 1 dollar = 114.01 to 114.02 yen at 7:30 a.m. that day.
In October, when the weekend came out, the U.S. consumer attitude index fell to a low level for the first time in 10 years. In October, the Consumer Price Index (CPI) also recorded its highest growth rate in 31 years, raising expectations for an early rate hike.
The yen exchange rate rose 0.08% to $1 = 113.94 to 113.96 yen at 8:20 a.m.
Earlier on the 12th (local time), the yen exchange rate closed at 1 dollar = 113.85 to 113.95 yen in the New York foreign exchange market on the 11th.
In October, the consumer attitude index fell contrary to market expectations, leading to yen purchases as the uncertainty of the U.S. economy grew.
However, as long-term interest rates rose and the New York stock market strengthened, it slowed down after the first moment of buying the yen.
In the Tokyo foreign exchange market, the yen is rising against the euro. At 8:18 a.m., 1 euro = 130.41 to 130.42 yen, up 0.17 yen from the weekend.
In Europe, the re-proliferation of COVID-19 has led to yen purchases and euro sales.
The euro is falling against the dollar. At 9:19 a.m., 1 euro = $1.1444 to $1.1445 dollars, down 0.0006 dollars from the weekend.
