US Labor Market Data Boosts Greenback, Sends Yen to New Low

The Japanese Yen has fallen to near a multi-decade low against the US Dollar as the greenback strengthens following better-than-expected labor market data from the United States. Initial Jobless Claims in the US fell to 187K, well below the forecast of 212K and the previous revised reading of 209K.

This marked the lowest level since 1969, indicating that layoffs remain extremely limited despite signs of slower hiring. The resilient figures could reinforce expectations that the Federal Reserve will maintain a restrictive monetary policy stance for longer.

The US Treasury yields and the broader Dollar Index moved higher, with the latter up 0.4%, following the release, providing additional support to USD/JPY. Investors will now focus on Japan's National Consumer Price Index data for June, due later on Thursday.