Yen Weakens, Breaking 157 per Dollar
The Japanese yen weakened past 157 per US dollar on Friday, falling for the fourth consecutive session. This weakening was primarily driven by a strengthening dollar, as investors digested a series of US economic data and reassessed the outlook for Federal Reserve interest rate policy.
The pressure on the yen came despite positive domestic Japanese data. Household spending rose 2.9% in November, driven by winter-related purchases and easing inflationary pressures.
However, wage conditions remain challenging. Real wages in November actually fell 2.8%, as inflation continued to outpace wage growth. This situation could make it difficult for the Bank of Japan (BoJ) to continue its aggressive policy tightening plan.
Earlier this week, BoJ Governor Kazuo Ueda emphasized that the central bank would continue to raise interest rates if economic developments and prices move in line with projections. This statement indicates that the BoJ remains cautious, but leaves room for rate hikes if economic momentum strengthens. (asd)
Source: Newsmaker.id
