© Reuters. Yen reacted little to upbeat CPI data
Investing.com – The yen was in the limelight Friday morning Asia after the release of Japan’s CPI data, while the dollar pared after losing its momentum.
The that measures the greenback against a basket of currencies stood at 89.78 at 11pm ET, up 0.13%. The greenback fell back from the 90 handle seen Thursday.
The U.S. Treasury Secretary Steven Mnuchin said President Trump’s policies would raise U.S. wages but would not cause broader inflation. “You can have wage inflation and not necessarily have inflation concerns in general,” he said, easing investors’ concern for higher inflation and interest rates. Fed officials also warned that more rate hikes would restrict economic growth.
The rose 0.12% to 106.87, as Japan’s national rose 0.9% year-on-year compared to the expected 0.8%. Inflation was still growing slowly and was far from the Bank of Japan’s 2 percent target, although the yen showed little reaction following the release of the data.
The economists also predicted the country’s central bank would keep the long-term bond yield target at zero percent for all this year – a major part of its ultra-loosening monetary policy implemented under the Bank’s reappointed governor Haruhiko Kuroda.
Meanwhile, the pair slipped 0.22% to 0.7827. A top money manager of the country predicted the Aussie will keep depreciating as the Reserve Bank of Australia keeps interest rates at a low level while its U.S. counterpart would hike rates more frequently this year.
Elsewhere, the People’s Bank of China set the fix rate against dollar at 6.3482 versus yesterday’s 6.3530. The pair was quoted at 6.3378, down 0.15%.
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