The Japanese Yen gains against the US Dollar ahead of key US inflation data, pressured by Treasury bond buyback programs.
The USD/JPY pair fell to near 158.90 in Asian trading on Wednesday, as the Japanese Yen strengthened against the US Dollar. The move follows the US Treasury’s bond buyback programs, which have weighed on the greenback.
Traders are also positioning ahead of the upcoming US Personal Consumption Expenditures (PCE) inflation report, a key indicator for Federal Reserve policy. Recent sessions saw the pair trading in a tight range, with market participants awaiting fresh catalysts.
The bond buyback initiative, aimed at improving liquidity, has contributed to the Dollar’s softness, while the Yen benefits from relative stability in Japanese monetary policy.