Japanese Yen slips against the Dollar after GDP data signals slower economic expansion, lifting USD/JPY above 159.00.
The Japanese Yen retreated below 159.00 against the US Dollar as weaker-than-expected GDP growth weighed on the currency. USD/JPY climbed back above the key level during European trading after hitting daily lows earlier in the session.
Japan’s latest GDP figures indicated a slowdown in economic activity, reducing support for the Yen. The pair had briefly dipped but reversed course as traders reassessed the outlook for monetary policy divergence between the Federal Reserve and the Bank of Japan.
Markets now await further data to gauge whether the Yen’s weakness will persist amid shifting expectations for interest rate differentials.