Forex
Japanese Yen Underperforms Amid Widening Trade Deficit
The Japanese Yen (JPY) is down against its major currency peers, with USD/JPY trading 0.22% higher at around 158.50 during the European trading session.
The widening trade deficit due to elevated energy prices has led to the underperformance of the JPY.
The Ministry of Finance reported a trade deficit of JPY 634.5 billion, a significant increase from JPY 409.9 billion earlier in the day.
Analysts at Standard Chartered have brought forward their expectations for Bank of Japan policy tightening, expecting two more 25bps hikes after September.