The Japanese yen was among the strongest currencies today following the domestic economic releases, which were better-than-expected.
The Tokyo core Consumer Price Index rose 0.8% in July, year-on-year, after increasing 0.7% in June according to the report from the Statistics Bureau. Yesterday, the Bank of Japan reported that the Services Producer Price Index rose 1.2% in June after increasing 1.0% in May. Analysts had expected both indicators to show the same rate of growth as in the previous reporting periods.
While the data was good, market analysts attributed the yen’s rally mostly to the continuing rise of Japanese government bond yields.
USD/JPY was down from 111.22 to 110.92 intraday before rebounding to 111.18 by 11:11 GMT today. EUR/JPY slipped from 129.50 to 129.28.
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