Yen Rallies as Growth Data Falls Short of Expectations

The Japanese yen has recovered for two consecutive days against the US dollar in Asian trading on Monday. The currency rose to ¥158.95, a 0.2% gain from its opening level of ¥159.29.

This upswing comes despite weak growth data released by Japan's government, which showed the economy grew at an annualized rate of 1.1% in the second quarter. This is lower than market expectations for a 1.9% expansion and below the 2% growth in the first quarter.

The yen's recovery has been supported by continued buying from lower levels, as well as speculation about renewed government intervention in the foreign exchange market. Mitsuhiro Furusawa, a former top currency diplomat in Tokyo, told Reuters that Japan could conduct further joint intervention with the US at any time to curb the yen's depreciation.