Let us know you agree to accept cookies!
News / Forex / Japanese Yen Slips as Dollar Strengthens Despite Inflation Data
Japanese Yen Slips as Dollar Strengthens Despite Inflation Data
Published: 13.08.2024
On Tuesday, the Japanese yen fell to around 147.3 per dollar, marking its decline in five of the last six sessions. This drop is attributed to the unwinding of yen carry trades losing steam and a stronger dollar bolstered by better-than-expected US economic data.
This decline occurred even though producer prices in Japan for July rose at their fastest pace in 11 months, highlighting ongoing inflationary pressures.
Adding to the uncertainty, a former Bank of Japan (BOJ) official indicated this week that the central bank may not raise interest rates again this year due to financial market instability. BOJ Deputy Governor Shinichi Uchida had previously stated that the bank would avoid rate hikes during periods of market turbulence.
Meanwhile, the BOJ’s July policy meeting summary revealed differing views among members. Some advocated for further rate increases, with one suggesting that rates should eventually reach at least 1%.
This decline occurred even though producer prices in Japan for July rose at their fastest pace in 11 months, highlighting ongoing inflationary pressures.
Adding to the uncertainty, a former Bank of Japan (BOJ) official indicated this week that the central bank may not raise interest rates again this year due to financial market instability. BOJ Deputy Governor Shinichi Uchida had previously stated that the bank would avoid rate hikes during periods of market turbulence.
Meanwhile, the BOJ’s July policy meeting summary revealed differing views among members. Some advocated for further rate increases, with one suggesting that rates should eventually reach at least 1%.
Feel free to share our work. Thank you!
Disclaimer: The information and publications do not serve as, and should not be construed as, financial, investment, trading, or any other form of advice or recommendations endorsed or provided by Noirbull. Any expression of opinion (which may change without prior notice) reflects the author's personal viewpoint, and the author does not assert any representations or warranties regarding the accuracy or comprehensiveness of the information or analysis provided. Neither the authors nor Noirbull bear responsibility for any losses arising from investments made based on perceived recommendations, forecasts, or other information presented herein. The content of these publications should not be construed as a direct or implied assurance, guarantee, or indication by Noirbull that customers will profit or that losses associated with them can or will be mitigated if they rely solely on the information provided.