The Japanese yen rose in the Asian market on Thursday against a basket of global currencies, extending its gains for the second day in a row against the US dollar, recording the highest level in two weeks, on the verge of touching the highest level in five months, after the release of strong data in Japan.

The data showed an increase exceeding expectations in retail sales during November, in the latest data that indicates an acceleration in consumer spending in Japan, which paves the way for the Japanese economy to return to the growth path during the fourth quarter, after the sudden contraction during the third quarter.

Japanese yen exchange rate today

The dollar fell against the yen by 0.5% to (141.11 yen), the highest since December 14, from today's opening price of (141.81 yen), and recorded the highest level at (141.82 yen).

The yen ended Wednesday's trading up 0.4% against the dollar, the first gain in the last three days, thanks to the broad decline in US yields.

Yesterday, the yield on ten-year US Treasury bonds recorded the highest level in five months at 3.783%, which led to continued selling of the US dollar in the foreign exchange market.

Powerful data

Data released today in Tokyo showed that retail sales rose by 5.3% during November, exceeding market expectations for a rise of 5.1%, and sales recorded an increase of 4.1% in October.

Retail sales are one of the most important indicators measuring consumer spending, which represents more than 70% of GDP, and the hot readings reflect strong economic activity in the country.

Accordingly, these data indicate that the Japanese economy is on the verge of returning strongly to the path of economic growth during the fourth quarter of this year, after the sudden contraction during the third quarter, which is expected to help the Bank of Japan exit the negative interest rate policy early next year.

Kazuo Ueda

Bank of Japan Governor Kazuo Ueda said on Monday that the central bank will likely consider changing monetary policy if the probability of achieving the 2% inflation target improves sustainably enough.

Ueda added: Companies have become more open to raising wages and prices, which may help achieve our inflation target in a sustainable and stable way.

Ueda explained: Given the doubts and uncertainty surrounding the economic and financial markets at home and abroad, the timing of the policy change has not yet been decided.