USD/JPY falls again as BoJ hawkishness contrasts with Fed rate cut bets
The post USD/JPY falls again as BoJ hawkishness contrasts with Fed rate cut bets appeared on BitcoinEthereumNews.com. USD/JPY drops below 146.00 as BoJ tightening signals gain traction. Fed dovish tilt pressures the US Dollar after Tuesday’s US CPI miss Yen Strengthens on BoJ Signals following higher than expected PPI data USD/JPY is down for a second straight day on renewed expectations of the Bank of Japan (BoJ) tightening. The move is driven by hawkish remarks from Deputy Governor Shinichi Uchida and hotter-than-expected April PPI data, which contrast sharply with soft US inflation figures and growing speculation of Federal Reserve (Fed) rate cuts. At the time of writing, USD/JPY is trading near 145.60, extending its decline from earlier at 146.00 as diverging central bank outlooks weigh on the pair. BoJ hawkishness meets strong PPI On Tuesday, Bank of Japan Deputy Governor Shinichi Uchida reaffirmed the central bank’s readiness to tighten policy further, even amid global uncertainties such as US trade moves. Speaking to lawmakers, Uchida acknowledged that Japan’s underlying inflation and long-term expectations may temporarily stagnate, but pointed to persistent upward pressure from a “very tight” labor market. He emphasized that rising wages and shipping costs will likely be passed on to consumers, supporting a sustainable inflation trend. The Yen extended gains on Wednesday after Japan’s April Producer Price Index (PPI) came in as expected, up 4.0% YoY, highlighting ongoing upstream price pressures. The data, combined with Uchida’s hawkish tone, reinforced expectations that the BoJ may deliver another rate hike. As a result, USD/JPY dropped below 146.00, driven by narrowing yield differentials and growing confidence in the BoJ’s tightening path. Soft US inflation data and dovish Fed signals weigh on the US Dollar Meanwhile, in the US, April’s Consumer Price Index (CPI) report came in below expectations on Tuesday. Headline inflation rose just 0.2% month-on-month, below the 0.3% forecast, while annual inflation eased to 2.3%, the lowest since…
The post USD/JPY falls again as BoJ hawkishness contrasts with Fed rate cut bets appeared on BitcoinEthereumNews.com.
USD/JPY drops below 146.00 as BoJ tightening signals gain traction. Fed dovish tilt pressures the US Dollar after Tuesday’s US CPI miss Yen Strengthens on BoJ Signals following higher than expected PPI data USD/JPY is down for a second straight day on renewed expectations of the Bank of Japan (BoJ) tightening. The move is driven by hawkish remarks from Deputy Governor Shinichi Uchida and hotter-than-expected April PPI data, which contrast sharply with soft US inflation figures and growing speculation of Federal Reserve (Fed) rate cuts. At the time of writing, USD/JPY is trading near 145.60, extending its decline from earlier at 146.00 as diverging central bank outlooks weigh on the pair. BoJ hawkishness meets strong PPI On Tuesday, Bank of Japan Deputy Governor Shinichi Uchida reaffirmed the central bank’s readiness to tighten policy further, even amid global uncertainties such as US trade moves. Speaking to lawmakers, Uchida acknowledged that Japan’s underlying inflation and long-term expectations may temporarily stagnate, but pointed to persistent upward pressure from a “very tight” labor market. He emphasized that rising wages and shipping costs will likely be passed on to consumers, supporting a sustainable inflation trend. The Yen extended gains on Wednesday after Japan’s April Producer Price Index (PPI) came in as expected, up 4.0% YoY, highlighting ongoing upstream price pressures. The data, combined with Uchida’s hawkish tone, reinforced expectations that the BoJ may deliver another rate hike. As a result, USD/JPY dropped below 146.00, driven by narrowing yield differentials and growing confidence in the BoJ’s tightening path. Soft US inflation data and dovish Fed signals weigh on the US Dollar Meanwhile, in the US, April’s Consumer Price Index (CPI) report came in below expectations on Tuesday. Headline inflation rose just 0.2% month-on-month, below the 0.3% forecast, while annual inflation eased to 2.3%, the lowest since…
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