The Japanese yen gained on its major rivals today despite somewhat soft inflation print that came out in Japan during the Asian trading session. The major supporting factor for the currency remained fears of trade wars.
The Bank of Japan core Consumer Price Index rose 0.5% in May, year-on-year, the same as in April. Analysts had expected inflation to accelerate to 0.6%.
The Services Producer Price Index rose 1.0% in May, year-on-year, also matching the April rate of increase. In this instance, though, the actual reading was in line with economists’ expectations.
Previously, the United States announced restrictions of Chinese investment in US companies. Since then, US officials made conflicting statements regarding whether similar restrictions will apply to all countries or the investment curb singled out China specifically.
USD/JPY fell from 109.75 to 109.61 as of 12:10 GMT today, though bounced from the daily low of 109.37. EUR/JPY declined from 128.45 to 127.94. GBP/JPY went down from 145.69 to 145.10.
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