The Japanese yen held steady around 142.3 per dollar on Friday, hovering near seven-month highs as investors digested the latest inflation data.
Official figures showed headline inflation in Japan eased to a four-month low of 3.6% in March, while core inflation rose in line with expectations to 3.2%.
The market’s focus now shifts to the Bank of Japan’s policy meeting next week, where the central bank is widely expected to keep interest rates unchanged at 0.5%.
However, policymakers may revise their growth projections downward amid growing concerns over the impact of US tariffs on Japan’s export-reliant economy.
Although the BOJ is expected to maintain a gradual tightening path this year, driven by persistently high food prices and rising wages, the external trade environment continues to cast uncertainty over its monetary stance.
Meanwhile, Japanese Finance Minister Kato addressed currency concerns, stating that Japan is not manipulating the foreign exchange market to weaken the yen.
AloJapan.com