JPY remains under pressure. Overview for 12.06.2024

The Japanese yen is declining against the US dollar on Wednesday. The current USDJPY exchange rate stands at 157.22.

Japan’s latest statistics showed a 2.4% y/y increase in producer prices in May, marking a significant acceleration compared to April, when the figure rose by only 1.1%. The current value is the highest since last August. The data also exceeded forecasts.

The focus is shifting to the Bank of Japan’s upcoming meeting on Friday. The main issue is whether the regulator will reduce the volume of monthly bond purchases, with no expectations of changes to the interest rate.

Last week, Bank of Japan Governor Kazuo Ueda confirmed that the central bank would gradually reduce its enormous balance sheet. However, the timeline for this process still needs to be defined.