The Japanese yen firmed toward 158 per dollar on Tuesday, snapping a two-session slide as investors returned from an extended holiday weekend. Sentiment was shaped by data showing Japan’s producer prices rose 6.8% in September, below the forecast 7.6% and the slowest increase since May. Even so, the figures underscored ongoing inflationary pressures and strengthened expectations for a possible interest rate hike in the near term.
Bank of Japan Governor Kazuo Ueda said the timing and pace of future rate increases would depend on how higher wholesale prices pass through to consumer inflation and influence household spending. However, uncertainty persists over whether the central bank will move again this month, though markets still see a potential hike in December or January.
