Yen drops as Tokyo secures the Olympics

Published: 9 Sep at 10 AM Tags: Euro, Dollar,

The yen has dropped against the dollar following Tokyo’s winning bid to host the Olympic Games in 2020. The dollar is now worth 99.57 yen, a rise of 0.4 per cent. The euro is also up to 131.21 yen, an increase of 0.5 per cent.

The committee in charge of the Olympic bid reckon higher pieces and construction could add three trillion yen to the economy over the years leading up to the Games.

Some experts are describing the Tokyo win as a pleasant surprise after recent issues over Fukushima nuclear power plant water problems. Early gains against the yen by the greenback were tempered slightly by Japanese exporters selling their dollars.

Disappointing job figures coming out of the US on Friday cast some doubt over whether the Federal Reserve will push ahead with scaling back its easy money stimulus programme this month. However, two leading Fed officials have suggested that tapering the bond buying will still happen.

If this happens the dollar is likely to experience a boost. Positive economic data from China has given the Australian dollar a much needed boost. The Aussie is currently worth $0.9205, a 0.2 per cent rise and the highest the currency has been for three weeks.