Japanese Yen refreshes monthly high against USD on strong domestic inflation data
The Japanese Yen (JPY) attracts fresh buyers during the Asian session on Tuesday following the release of strong inflation data. Adding to this, Bank of Japan (BoJ) Governor Kazuo Ueda's comments left the door open for further policy tightening by the central bank.
This marks a sharp divergence in comparison to expectations that the Federal Reserve (Fed) will cut interest rates further this year and turns out to be a key factor that provides a goodish lift to the JPY.
Apart from this, persistent geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East further benefit the JPY's relative safe-haven status.
The US Dollar (USD), on the other hand, remains depressed near its lowest level since April 22 amid concerns about the worsening US fiscal situation. This contributes to the USD/JPY pair's slide to the 142.00 neighborhood, or over a one-month low, and supports prospects for further losses.
Source: Fxstreet