Japanese Yen Gains as Tokyo’s Inflation Tops Expectations

The Japanese yen gained today after inflation in Tokyo, Japan’s most populated city, topped market expectations. Other macroeconomic indicators released during the trading session were not as good, but that did not bother the currency, at least for now.

The Tokyo core Consumer Price Index rose 0.1% in May from a year ago, which was a better result than no change predicted by analysts and the drop by 0.1% registered in the preceding month. The core CPI for the whole Japan was up 0.3% in April, year-on-year, accelerating from the 0.2% growth in March but failing to meet expectations of a 0.4% increase. The Services Producer Price Index behaved in the same manner, with its 0.7% annual growth in April exceeding the previous month’s gain of 0.8% but missing forecasts of a 0.9% advance.

USD/JPY dropped from 111.82 to 110.93 as of 9:59 GMT today. EUR/JPY tumbled from 125.36 to 124.44.

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