Usman Salis
USD/JPY maintains stability at 151.40 amidst a cautious monetary policy stance by the Bank of Japan (BoJ).
Tokyo Consumer Price Index (YoY) Climbs to 2.6%
USD/JPY remains steady at around 151.40 during the early European trading session on Friday. The Tokyo Consumer Price Index (YoY) for March rose to 2.6%, following a 2.5% increase in February. Additionally, the Core Tokyo CPI grew by 2.9% year-over-year, slightly lower than the 3.1% rise seen in February.
Japanese Officials Express Concern Over FX Market Volatility
Japanese Finance Minister Shunichi Suzuki emphasized the significance of stable currency movements aligned with economic fundamentals, expressing concerns over rapid fluctuations in the foreign exchange markets. He attributed these movements to speculative activities and assured that authorities are closely monitoring FX developments, ready to take necessary actions to address disorderly movements.
US Dollar Index Strengthens Near 104.60
Prime Minister Fumio Kishida supported the notion of maintaining accommodative monetary conditions, stating it to be appropriate for the central bank. He reiterated the government's commitment to collaborating with the Bank of Japan to stimulate wage increases and combat deflation, potentially impacting the Japanese Yen and supporting the USD/JPY pair.
Fed Governor's Hawkish Comments Boost Greenback
Meanwhile, the US Dollar Index (DXY) is on the rise, nearing 104.60, buoyed by recent data indicating economic expansion in the United States driven by robust consumer spending. In the fourth quarter of 2023, the US Gross Domestic Product (GDP) Annualized expanded by 3.4%, surpassing market expectations of a 3.2% increase. Moreover, the US Gross Domestic Product Price Index remained stable with a 1.7% rise, in line with Q4 expectations.
The Greenback received further support from hawkish statements made by a Federal Reserve (Fed) official. Fed Governor Christopher Waller hinted at a potential delay in interest rate cuts given the strong inflation figures, reinforcing confidence in the US Dollar.
Usman Salis
