Yen strengthens as Japan announces stimulus

[NEW YORK] The Japanese yen rose slightly against the US dollar and the euro on Tuesday as officials in Tokyo unveiled a new large-scale economic stimulus plan.

Towards 2100 GMT, the dollar was at 100.90 yen, down from 102.41 the day before. The euro stood at 113.25 yen, down from 114.29.

Japan's Cabinet on Tuesday adopted a US$273 billion stimulus package to help revive growth in that country's listless economy. The measures included infrastructure spending and efforts to raise the birthrate.

The euro and the British pound also both gained against the US dollar, with the euro at US$1.1224, up from US$1.1160 and the pound at US$1.3354, up from US$1.3178.

Boris Schlossberg of BK Asset Management said economic data emerging out of the United States left diminishing hopes that the US Federal Reserve would raise interest rates in September.

Quarterly growth figures released Friday showed the US economy growing at 1.2 per cent in the second quarter, well below analyst expectations.

Personal spending figures released Tuesday showed that incomes were rising, although not as fast as expected, according to Mr Schlossberg.

AFP