Yen Exchange Rate to Dollar Flat at $109.79

On Monday, the yen exchange rate to the dollar was flat at $109.79.

The Japanese yen currently struggles with political turmoil, economic distress, and coronavirus outbreak.

Last week, Japan’s Prime Minister Yoshihide Suga bowed down to the upcoming leadership election.

Criticisms rose to his leadership rooting from the government’s pandemic response to the rapid surge of delta infections.

In August data, the Services Purchasing Managers’ Index (PMI) edged down 42.90 from its previous 47.40.

Furthermore, the Japanese government wants to extend the state of emergency in Tokyo and other parts of the country to curb out infections. 

Meanwhile, the yen exchange rate to euro traded at 0.06% to $130.30.

Consequently, the Australian dollar to yen inched down 0.31% to $81.59.

Then, the currency declined at 0.09% to $151.98 against the pound sterling.

Also, the investors’ sentiments in the USD influenced the yen exchange rate.

The US dollar index, which measures the greenback to other currencies, gained 0.10% to $92.21.

Last August 4, the index dipped $91.94 as investors expected the US labor data to be weaker.

Meanwhile, the nonfarm payrolls disappointed the market as they released lower than the expected numbers. 

On September 03, the readings sharply declined to 253,000 jobs, far from the forecasted 750,000.

Consequently, the downbeat data from the key payrolls could delay the Federal Reserve’s plan to initiate a tapering stimulus.

Also, the unemployment rate declined 5.20% from its previous record of 5.40%, which is in line with the market participants’ forecast.

Moreover, the euro to dollar exchange rate plunged 0.11% to $1.18.

Similarly, the pound sterling inched down 0.12% to $1.38 to the greenback. 

On the other hand, the Canadian dollar improved 0.12% to $1.25.

CHF Currency Treads Water against USD

Meanwhile, the CHF currency treads water against the greenback as the pair settles at $0.91.

Recently, the Swiss franc is currently afflicted with downbeat economic data. 

Switzerland’s July retail sales sharply plummeted to 2.60% on a yearly basis from its previous 0.10%.

Moreover, the gross domestic product declined to 7.70% from the forecasted 9.00%.

In addition, experts expect that the impact of the COVID-19 on the economy will continue to persist despite the low inflation. 

Meanwhile, other currency pairs extended their gains. 

The USD/INR pair hiked 0.09% to $73.04, as the USD/MXN pair jumped 0.10% to $19.93.

Moreover, the USD/ZAR pair rose 0.34% to $14.36, likewise the USD/RUB pair climbed 0.06% to $72.92.