The Japanese yen climbed against the EUR and U.S. Dollar as falling producer prices and stocks in Japan boosted demand for the nation's currency as a refuge. The Yen climbed to 132.85 per EUR from 133.26 yesterday. Japan's currency strengthened to 89.36 to the Dollar from 89.71.
Japan's producer prices fell for a 9th consecutive month as oil traded lower than last year's levels and demand for materials waned. The costs companies pay for energy and unfinished goods declined 7.9% in September from a year earlier after sliding a record 8.5%, the Bank of Japan said today. The Yen's 11% gain against the U.S. Dollar in the past 6 months has also contributed to price declines by making imports cheaper.
The government will cut prices of the grain sold to domestic flour millers by the most in at least 39 years as import costs dropped on a stronger currency and a slump in international prices, the Japanese Ministry of Agriculture, Forestry and Fisheries said this month.