The Japanese Yen gained modestly against the US Dollar on Thursday, with USD/JPY trading slightly lower around 161.75, after US Personal Consumption Expenditures (PCE) data broadly met market expectations, according to FX Street.
Scotiabank strategists noted that the USD/JPY pair remained steady ahead of the Tokyo Consumer Price Index release, where the consensus anticipates inflation to remain in the mid-to-upper 1% range. This cautious outlook reflects ongoing market attention to Japan's inflation dynamics.
FX Street also highlighted that the recent moves come as the Yen continues to hover near 40-year lows versus the Dollar, underscoring the importance of upcoming domestic inflation data for Japanese investors and policymakers.