The USD/JPY currency pair rose near its highest value in five months, going over 156.0. This significant drop in the Yen’s value sparked talks of potential action from Japan’s officials.
Although the Yen’s value slightly improved on Friday due to strong inflation figures, the currency’s overall performance remains weak.
Japan Waits on US Moves Before Rate Hike
It is unclear when Japan’s central bank will decide to increase interest rates. In its last meeting in December, the bank chose to keep rates the same, waiting to see salary changes and what the new US government will do next.
Meanwhile, even though the US dollar was weaker after American inflation data came in lower than expected, the Yen didn’t improve much. This data had previously reduced worries about how quickly the US might reduce interest rates next year.