Japan’s current account surplus missed forecasts in June, while BoJ policymakers remain divided over future rate hikes amid inflation risks.
The USD/JPY pair climbed to 158.20 in Asian trading Monday, extending gains as the Japanese Yen weakened. The move followed the Bank of Japan’s Summary of Opinions, revealing a split among board members over whether to hold or accelerate monetary tightening amid rising price pressures.
Japan’s current account surplus narrowed sharply to JPY 923.0 billion in June, down from JPY 1,281.8 billion a year earlier and below the JPY 1,512 billion forecast. Strong AI-related electronics exports provided some support, but surging crude oil imports weighed on the balance.
The US Dollar found broader support from geopolitical tensions, including heightened US-Iran conflict risks near the Strait of Hormuz. Markets remain cautious as Middle East instability and BoJ policy uncertainty persist.