The USD/JPY pair remained relatively stable on Friday, trading at around 152.60 during the Asian session after experiencing losses in the previous day. The pair faced downward pressure following US President Donald Trump’s decision to delay the imposition of reciprocal tariffs. At the same time, the US Dollar (USD) weakened as US Treasury yields fell across the curve, despite lingering concerns over a potential global trade war. Investors are now awaiting the release of US Retail Sales data later today for further market direction.
Meanwhile, the US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, extended its losses for the fourth consecutive session. As of writing, the DXY stood near the 107.00 mark, with the yields on 2-year and 10-year US Treasury bonds at 4.31% and 4.53%, respectively.
In economic news, Core Producer Price Index (PPI) inflation in the United States increased by 3.6% year-on-year in January, surpassing the anticipated 3.3%, though slightly lower than the revised 3.7% (previously reported as 3.5%). This has bolstered expectations that the Federal Reserve (Fed) will likely delay any rate cuts until the second half of the year. Persisting inflationary pressures are also strengthening the view that the Fed will maintain interest rates in the 4.25%-4.50% range for an extended period.
On the Japanese side, Economy Minister Ryosei Akazawa remarked on Friday that Japan will respond appropriately to the potential impact of US reciprocal tariffs. He also noted that the weakness of the Japanese Yen (JPY) has mixed effects on Japan’s real economy.
The Japanese Yen received some support on Thursday after stronger-than-expected PPI data from Japan. This result reinforced market expectations that the Bank of Japan (BoJ) may implement further rate hikes. The data highlighted growing inflationary pressures in Japan, complemented by recent wage growth figures, making a stronger case for additional tightening measures from the BoJ.
Related topics:
Bitcoin Faces Pressure as Safe-Haven Assets Shine Amid Geopolitical Instability
Island Technology Inc. Raises Funds at $4.5 Billion Valuation Amid Cybersecurity Growth
Korea Gas Corp. Shares Drop 15% After Disappointing Offshore Drilling Results
