The US dollar tumbled against the yen after the Chicago PMI report which showed business activity in the Midwest slowed more than expected in April.
USDJPY fell below the key psychological level of 80.00, the lowest in more than two months.
Chicago’s business index fell to 56.2. A reading above 50 indicates expansion but although the number was still well over the 50 percent mark, this was lower than market expectations for a reading of 61.0. It is the lowest level in twenty-nine months. The reading was 62.2 in March.
The report comes after a separate report earlier on US personal spending. Consumer spending in the U.S. rose a slower 0.3 percent in March, lower than the forecast 0.4 percent. The numbers were disappointing considering February saw a sharp increase of 0.9 percent.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.