Australian dollar firms, reaches seven-year yen high

THE Australian dollar has firmed, reaching a seven-year high against the Japanese yen ahead of economic data from Australia’s second biggest trading partner.

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THE Australian dollar has firmed, reaching a seven-year high against the Japanese yen ahead of economic data from Australia’s second biggest trading partner.

At 0630 AEDT on Monday, the local currency was trading at 87.64 US cents, up from 86.84 cents on Friday.

It was worth 102.15 Japanese yen, its highest level since October 2007 and up from 100.97 on Friday.

Japanese economic growth data for the September quarter is due out on Monday.

The economy of Australia’s second biggest trading partner shrunk during the June quarter, following a tax increase in April which has threatened to plunge Japan back into recession.

Analysts see Monday’s figures as a test of whether the Abe administration should follow through on another tax increase planned for 2015.

Currency snapshot at 0630 AEDT on Monday

One Australian dollar buys:

* 87.64 US cents, from 86.84 cents on Friday

* 102.15 Japanese yen, from 100.97 yen

* 69.91 euro cents, from 69.86 euro cents

(*Closes taken at 1700 AEDT previous local session)

Source: IRESS

Originally published as Australian dollar firms, reaches seven-year yen high