08.09.201403:34:50UTC+00Japanese yen close to lowest since 2008

The Japanese yen was close to its lowest in nearly six years versus the US dollar as Japanese reports showed a decrease in business spending and current-account surplus, adding to cues the economy is losing momentum.

The yen was slightly changed at ¥105.07 against the greenback following it depreciated to ¥105.71 on September 5, the lowest since October 2008. Versus the euro, the currency was also little changed at ¥136.22.

“The collapse of Japan’s previously large current-account surplus is the main medium-term driver behind a weaker yen,” said Joseph Capurso, Currency Strategist at Commonwealth Bank of Australia.

Capurso added the bigger drop in business spending was certainly disappointing.

The Japanese Cabinet office reported annualized gross domestic product declined 7.1% in the 2nd quarter. Business spending fell 5.1% and the adjusted current account balance narrowed to ¥99.3 billion ($945 million) in July from ¥125.6 billion last month.