Japanese Yen retreats as weak data adds to BoJ uncertainty
The post Japanese Yen retreats as weak data adds to BoJ uncertainty appeared com. The Japanese Yen (JPY) retreats slightly from an over one-week high touched against the US Dollar (USD) during the Asian session on Friday, following the disappointing release of Japan’s Household Spending data. Weaker consumer spending could cool demand-driven inflation and allow the Bank of Japan (BoJ) to delay further raising interest rates on the back of Japan’s new Prime Minister Sanae Takaichi’s pro-stimulus stance. This, in turn, prompts some JPY selling and assists the USD/JPY pair to climb back above the 153. 00 round-figure mark. Meanwhile, minutes of the BoJ’s September policy meeting, released on Wednesday, kept hopes alive for an imminent rate hike. Moreover, speculations that Japanese authorities might intervene to stem further weakness in the domestic currency might hold back the JPY bears from placing aggressive bets. The USD, on the other hand, remains on the defensive amid worries that a prolonged US government shutdown could affect the economic performance. This, in turn, might contribute to keeping a lid on any meaningful appreciation for the USD/JPY pair. Japanese Yen edges lower as weaker domestic data adds to BoJ uncertainty amid fiscal concerns Data released earlier this Friday showed that Japan’s household spending rose 1. 8% from a year earlier in September, compared to 2. 5% expected and 2. 3% growth recorded in the previous month. On a seasonally adjusted, month-on-month basis, spending fell 0. 7%, pointing to signs of cooling private consumption. Meanwhile, Japan’s new Prime Minister Sanae Takaichi is reportedly looking to finalize an economic stimulus package of around $65 billion to address inflation and growth by late November and pass a supplementary budget to fund it. Moreover, the Bank of Japan remains reluctant to commit to further rate hikes. Minutes of the BoJ’s September 18-19 meeting highlighted a cautious rate-hike path as policymakers weighed inflation dynamics and trade risks. Board members,.