Japan’s household spending fell 2.9% YoY in March, missing estimates and pressuring the JPY amid broader economic concerns.
The USD/JPY pair climbed to a four-day high, trading near the mid-157.00s, up 0.15% as Japan’s household spending declined for the fourth straight month. March data showed a 2.9% YoY drop, worse than the 1.8% decline in February and below market expectations.
The decline reflects persistent inflationary pressures and broader economic uncertainty, including rising US-Iran tensions. A modest USD uptick also supported the pair, though bullish conviction remains limited ahead of US inflation data later today.
Geopolitical risks, including US-Iran standoffs, continue to underpin the USD’s reserve currency status. Markets await US consumer inflation figures to gauge the Federal Reserve’s policy outlook.