FX.co ★ Yen Slips Amid Weak Data

The Japanese yen weakened to approximately 153.5 against the US dollar on Friday, retracting gains from the previous day. This shift followed new data indicating that household spending increased by 1.8% in September, a deceleration from August's 2.3% rise and falling short of the anticipated 2.5% growth. Additional reports revealed that wage growth remains insufficient to keep pace with inflation, as real wages declined by 1.4% year-on-year, marking the ninth consecutive month of downturn. Bank of Japan Governor Kazuo Ueda has commented that the wage projections for 2026 will play a crucial role in decisions regarding the timing of policy tightening, following the central bank's decision to maintain its current stance last week. The yen had previously strengthened on Thursday due to a general risk-averse market sentiment, which increased the appeal of safe-haven assets and a weakened dollar, fueled by indications of a cooling US labor market and heightened expectations for an imminent interest rate reduction by the Federal Reserve.