BOJ Hints at Interest Rate Hike as Japan's Core Inflation Surges

The Japanese yen has maintained its stability on Friday following the release of July's core inflation data in Japan. The core consumer prices, which exclude volatile fresh food prices, have risen by 1.8% from a year earlier, according to government data.

This increase marks a faster pace than June's 1.6% rise and will likely be closely watched by the Bank of Japan (BOJ) as it considers its next policy move at its September meeting on the 17th and 18th.

The USD/JPY pair has traded flat around 159, having fallen by about 1% on Wednesday in response to the US Treasury Department's announcement of larger debt buybacks aimed at containing borrowing costs.