Yen Rebounds from Two-Year Low vs USD as BoJ Hike Bets Counter Weaker CPI
The Japanese yen is recovering from a two-year low against the U.S. dollar, with the USD/JPY pair pulling back from the 161.80 area. Market expectations for a Bank of Japan rate hike are offsetting softer domestic inflation data.
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The USD/JPY pair extended its late pullback from the 161.80 region—a fresh high since July 2024—and drifted lower during the Asian session.
Renewed bets on a Bank of Japan rate hike provided support for the yen, countering the impact of Japan's softer-than-expected consumer price index data.
Traders are now monitoring further BoJ guidance and U.S. economic data for directional cues.
Source: FXStreet Forex News