The Japanese Yen remains near its weakest level in decades against the dollar following recent inflation data.
The USD/JPY pair traded steady at 163.90 in early Asian trading on Friday, with the yen lingering near a multi-decade low against the dollar. The lack of movement follows recent Japanese inflation data, which failed to shift market expectations for monetary policy divergence between the U.S. and Japan.
Prior to the release, the yen had weakened consistently over the past month, reflecting the Bank of Japan’s ultra-loose policy stance compared to the Federal Reserve’s higher-for-longer rate outlook. Analysts await the U.S. S&P Global PMI data later Friday for further direction.
Markets showed little reaction to the yen’s stagnation, as traders remain focused on upcoming economic indicators that could influence Fed policy.