FX.co ★ Japanese Yen Trades Near 2-Month Low

The Japanese yen lingered near 150 per dollar on Friday, marking its weakest position in almost two months. This depreciation was fueled by the overarching strength of the US dollar following robust American economic data, which lessened the likelihood of substantial interest rate cuts by the Federal Reserve. Data released on Thursday indicated a decline in weekly jobless claims to 218,000, highlighting the resilience of the labor market. Additionally, the figures for the second-quarter GDP growth were adjusted upwards to an annualized rate of 3.8%, representing the fastest pace in nearly two years. Meanwhile, in Japan, Tokyo's core inflation rate held steady at 2.5% in September, matching August's rate but falling short of the predicted 2.8%. Minutes from the Bank of Japan's July meeting revealed a predisposition among policymakers to consider further rate hikes contingent on the evolution of growth and inflation as anticipated. At the September meeting, the BOJ maintained steady interest rates, although the presence of two dissenting voices hinted at the potential for additional monetary tightening.