The yen’s exchange rate rose to the US dollar on Thursday in response to improving prospects for the Federal Reserve interest rate. The USD/JPY pair has declined to 153.88.
After the US released up-to-date data on April inflation, the likelihood of a reduction in the cost of borrowing in the country increased markedly. Both the overall and the core consumer price index slowed in April, while retail sales stagnated. Hypothetically, an interest rate cut from the Federal Reserve means a narrower gap between the Federal Reserve and the Bank of Japan’s monetary approaches, which is a positive signal for the yen.
"Please note that the information provided here is for educational and informational purposes only and should not be considered trading or financial advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions."
After the US released up-to-date data on April inflation, the likelihood of a reduction in the cost of borrowing in the country increased markedly. Both the overall and the core consumer price index slowed in April, while retail sales stagnated. Hypothetically, an interest rate cut from the Federal Reserve means a narrower gap between the Federal Reserve and the Bank of Japan’s monetary approaches, which is a positive signal for the yen.
"Please note that the information provided here is for educational and informational purposes only and should not be considered trading or financial advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions."