Japanese Yen Remains Weak as New Year Ahead
The Japanese Yen (JPY) remained firm against the US Dollar (USD) on Monday (12/30). The USD/JPY pair remained subdued as the Japanese Yen (JPY) strengthened on the possibility of the Bank of Japan (BoJ) raising interest rates in January following the release of the Tokyo Consumer Price Index (CPI) inflation data last week.
Japan’s Jibun Bank Manufacturing PMI came in at 49.6 in December, slightly beating the preliminary estimate of 49.5 and improving from 49.0 in November. While it marked the highest level since September, it still signaled a sixth straight month of decline in factory activity.
The Nikkei 225 fell to around 39,950 on Monday, snapping a two-day rally. The decline came after a slight decline in US futures, following Wall Street’s slump on Friday driven by rising Treasury yields and indications of more restrained interest rate cuts in 2025.
Source: FXStreet