- The Japanese yen was closing in on seven-year lows against the US dollar on Monday but reversed this trend as news came that the Japanese economy had unexpectedly fallen into recession in the last quarter which boosted the yen given its safe haven status.
The official report showed on Monday that Japan’s gross domestic product receded by an annualized 1.6% in the third quarter, moving on from a staggering 7.3% drop in the previous quarter. These results completely counteracted what economists had predicted, with the majority of economists forecasting growth of 2.3 percent.
- The Canadian dollar also had a poor start to the week against its US counterpart. This was also linked to the news of Japan’s economy falling into recession as this led support for the dollar as a safe haven currency.
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