Yen slightly off 13-year low as Q1 GDP sharply revised upward

The Japanese yen made mild gains on Monday (8 June) morning in Asia following revised GDP data that showed the world's third largest economy has expanded more than previously estimated in the first quarter of this year.

The USD/JPY slipped to 125.40 from the previous close of 125.62, which was its highest close since early 2002. The dollar had rallied 4.8% against the Japanese currency in May and gained another 1% so far in June.

The first quarter annualised growth rate was revised up to 3.9% from 2.4% while analysts had been expecting only a slight improvement to 2.8%.

On a quarterly basis, the rate was up to 1% from 0.6%, making the Q1-2015 the best quarter in two years. This is the second quarter of growth after last year's recession period.

It was the growth in private consumption and business spending that supported overall Q1 growth, as the sector saw a revision from 0.4% sequential growth to 2.7%.

A separate release showed that Japan's trade balance fell to a deficit of ¥146.2bn in April from a surplus of ¥671.4bn in March.

With the G7 meeting under way, the performance of the euro is set to influence the broad dollar movement and in addition, inflation report hearings in the UK parliament will impact the pound.

The economy watchers' survey for May is the next Japanese data scheduled for the day while the Chinese May trade data due later in the day is a release from elsewhere in focus from the region.