12 hours ago
- Business
- Business Standard
Yen upbeat as Japan's core inflation accelerates
The Japanese yen stays upbeat against the dollar on Friday following higher inflation data that increases possibility of rate hike by BoJ. Data released earlier today showed that Japan's annual consumer price index (CPI) remained well above the Bank of Japan's (BoJ) target of 2% in May. Japans consumer prices excluding fresh food quickened for a third month to 3.7% from a year earlier in May, according to a Ministry of Internal Affairs released Friday. Thats the fastest pace since January 2023. Food inflation was again a major driver, with the price of rice the nations staple food jumping 102% from a year earlier. Service prices, a metric closely watched by the BOJ, rose 1.4% from a year earlier, slightly more than 1.3% in April. However, the BoJ earlier this week signaled its preference to move cautiously in normalizing still-easy monetary policy and decided to slow the pace of reduction in its bond purchases from fiscal 2026 that could limit gains in the counter. Nevertheless, safe haven demand amidst persistent trade-related uncertainties and rising geopolitical tensions in the Middle East could keep the yen supported. Currently, USDJPY is seen quoting at 145.29, down 0.14% on the day. Meanwhile, on the NSE, JPYINR futures are down 0.93% at 59.42.
