The Japanese Yen (JPY) holds modest gains against the US Dollar (USD) on Wednesday but struggles to extend its recovery despite a broadly weaker Greenback following softer-than-expected US inflation data.
At the time of writing, USD/JPY trades around 162.14, down 0.07% on the day
The US Producer Price Index (PPI) fell 0.3% in June after a 0.6% rise in May. The annual PPI rate slowed to 5.5% from 6.0%, below the 6.2% forecast. Core PPI rose 0.2% in June, missing the 0.4% forecast, while the annual core rate edged up to 4.7% from 4.6%, below expectations of 5.2%.
The data follow softer-than-expected US Consumer Price Index (CPI) figures released on Tuesday. Together, the weaker inflation readings have reduced expectations of a near-term Federal Reserve (Fed) interest rate hike, weighing on the US Dollar. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades around 100.70, easing from an intraday high of 101.03.