Tokyo’s July CPI rose 1.9% YoY, exceeding estimates, while the BoJ held rates at 1% but maintained a hawkish stance.
The British Pound’s rebound against the Japanese Yen faltered near 216.33 in European trading, erasing early gains as the JPY recovered. The cross had surged at the open due to profit-taking after a 1.7% drop on Thursday, triggered by Japan’s currency intervention.
Tokyo’s July Consumer Price Index, excluding fresh food, climbed 1.9% YoY, surpassing the 1.7% forecast and June’s 1.6% reading. The Bank of Japan kept rates at 1% but signaled a hawkish outlook, reinforcing support for the JPY.
Despite intervention and stronger inflation data, analysts question the JPY’s sustained strength. Market sentiment remains cautious as the cross struggles to extend gains amid shifting monetary policy expectations.