The Japanese Yen remained stable at 157.41 following the release of the latest inflation data on Friday.
Japan’s National Consumer Price Index (CPI) for June held steady at 2.8%, remaining at its highest level since February.
Meanwhile, the core consumer inflation rose to 2.6%, slightly above the previous reading of 2.5% but just below the estimate of 2.7%.
The yield on the 10-year Japanese government bond is trading around 1.04%, recovering from its three-week lows. I believe this recovery came after Japanese Minister Taro Kono stated that the Bank of Japan should raise interest rates again in July to support the yen.
The Bank of Japan is also expected to present its plans to reduce bond purchases this month. The USD/JPY pair has dropped by about 4% from its 38-year high of 161.95 recorded in July, due to interventions by Japanese authorities, with the market anticipating the possibility of more interventions.
At the same…
