Yen Holds Gains on Strong Wage Data
The Japanese yen traded around 157.8 per dollar on Friday after rising for two straight sessions, as data showed that nominal wages in Japan rose at their fastest pace in nearly three decades, strengthening expectations of another Bank of Japan interest rate hike in December. Minutes from the BOJ’s September meeting also suggested that the central bank could accelerate monetary tightening as it assesses the effects of developments in the Middle East, rising AI-related demand and foreign exchange movements. The BOJ raised its policy rate to a 31-year high of 1.25% in September before leaving it unchanged in October, while indicating that underlying inflation had reached its 2% target. The yen also benefited from safe-haven demand amid an intensifying global equity selloff, fueled by concerns over tighter AI industry regulation following a sweeping Democratic victory in the US midterm elections.
The Japanese yen traded around 157.8 per dollar on Friday after rising for two straight sessions, as data showed that nominal wages in Japan rose at their fastest pace in nearly three decades, strengthening expectations of another Bank of Japan interest rate hike in December. Minutes from the BOJ’s September meeting also suggested that the central bank could accelerate monetary tightening as it assesses the effects of developments in the Middle East, rising AI-related demand and foreign exchange movements.
The BOJ raised its policy rate to a 31-year high of 1.25% in September before leaving it unchanged in October, while indicating that underlying inflation had reached its 2% target. The yen also benefited from safe-haven demand amid an intensifying global equity selloff, fueled by concerns over tighter AI industry regulation following a sweeping Democratic victory in the US midterm elections.