Japan’s real wages rose 1.6% in June, supporting BoJ rate hike expectations amid hawkish June meeting minutes.
The Japanese Yen strengthened against the USD, holding above 157.00 as real wages in Japan grew for the sixth straight month in June, rising 1.6%. The data reinforced expectations for further Bank of Japan rate hikes.
Minutes from the BoJ’s June meeting showed a 7-1 vote to raise the policy rate by 25 basis points to around 1.0%, the highest since 1995. The decision reflected concerns over inflation risks. A softer USD, driven by easing Fed rate-hike bets, also supported the Yen.
Crude oil prices fell to a near four-week low on hopes of a US-Iran deal, reducing inflation fears and weighing on the USD. However, Yen bulls remained cautious amid mixed market cues.