The Japanese yen has once again experienced devaluation against the US dollar, leading to USD/JPY reaching a new peak. The current exchange rate stands at 143.01.
The yen’s reaction to macroeconomic reports is typically selective, but today presents a significant case.
Recent statistics have revealed that consumer prices in Japan rose at a faster pace than expected in May. Moreover, there has been an intensification of the trend towards inflation acceleration. Core inflation, excluding fresh food, increased by 3.2% year-on-year, slightly lower than the 3.4% recorded in April. However, these figures exceeded expectations of a 3.1% increase.
The primary inflation indicator also climbed to 4.3% year-on-year, reaching the highest level since 1981.
Many observers speculate that the Bank of Japan may revise its quarterly price forecasts during the July meeting. Such a significant shift in position could potentially lead to adjustments in the Bank of Japan’s yield curve monitoring program, representing the initial steps towards altering the structure of the central bank’s monetary policy.
The post JPY Hits New Low as USD/JPY Soars – June 23, 2023 appeared first at R Blog – RoboForex.
