The US dollar fell against the yen today as bleak economic data from various regions dented optimism about an imminent global recovery, prompting investors to shun riskier assets and seek the perceived safety of the Japanese currency.
In a sign that the global economy is still struggling, figures today showed China's annual economic growth slowed to its weakest on record in the first quarter, while euro zone industrial output plummeted in February.
“I think the general theme is a slight rise in risk aversion that was triggered by the disappointing Chinese GDP data and soft euro zone economic figures overnight," said Omer Esiner, forex market analyst at Ruesch International in Washington.
"This week's data in particular has poured some cold water on the idea of an imminent global recovery.”
In early New York trade, the dollar fell 0.3 per cent to 99.10 yen, while the euro fell around 0.2 per cent 131.04 yen.
The dollar showed a limited reaction to US data showing new housing starts fell in March while continued claims rose to a fresh record.
The euro was little changed at $1.3222, recovering after sliding to a session low of $1.3128, according to Reuters data.
Earlier, official data showed China's annual economic growth slowed to 6.1 per cent in the first quarter from 6.8 per cent in the final three months of last year, missing market expectations of 6.3 per cent.
Separate figures showed euro zone industrial output plummeted by a record 18.4 per cent year-on-year in February and inflation halved to an all-time low, reinforcing expectations that the euro zone economy is deteriorating and that interest rates may fall more.
Reuters