Japanese Yen Steady Ahead of Elections
The Japanese Yen (JPY) struggled to capitalize on its modest intraday uptick against its US counterpart and for now, seems to have stalled its recovery from its lowest level since July, around the 153.20 area touched earlier this week. Data released on Thursday showed that business activity in both the Japanese manufacturing and services sectors contracted in October. Moreover, a drop in Tokyo’s core inflation rate below the Bank of Japan’s (BOJ) target of 2% dampened expectations for further interest rate hikes in 2024 and exerted pressure on the JPY.
Moreover, political uncertainty ahead of Japan’s general elections on Sunday, along with a generally positive risk tone, turned out to be other factors that dented demand for the safe-haven JPY. Further, the emergence of some dip-buying in the US Dollar (USD), supported by bets for a smaller interest rate cut by the Federal Reserve (Fed), lifted the USD/JPY pair closer to the 152.00 level heading into the European session. However, recent verbal intervention by Japanese authorities has kept JPY market players from placing fresh bets and capped the pair.
Source: FXStreet
