The Japanese yen tests its lowest level of the year against the dollar, driven by strong domestic data and BoJ policy expectations.
USD/JPY has extended its downtrend, approaching the 2024 peak near 162.00 after breaking out of a recent consolidation phase. The move follows stronger-than-expected May retail sales data, reinforcing expectations for further Bank of Japan policy adjustments.
The pair previously consolidated around 157.00 before resuming its upward trajectory. Analysts note the yen’s weakness reflects diverging monetary policy outlooks between the BoJ and the U.S. Federal Reserve, with markets pricing in delayed rate cuts from the Fed.
No immediate market reaction was specified, but the yen’s decline underscores persistent pressure on the currency amid global yield differentials.