Forex
Yen Under Pressure as Tokyo CPI and Fed's Warsh Speech Loom
The Japanese yen continues to hover near its multi-month low against the US dollar as traders await crucial data from Tokyo and a high-profile speech by Federal Reserve Governor Kevin Warsh.
On Monday, the USD/JPY exchange rate remained steady at around 158, reflecting persistent interest rate differentials between the Bank of Japan and the Federal Reserve.
A key indicator of inflation in Japan is the Tokyo Core Consumer Price Index (CPI), which is expected to show a cooling trend but still above the BOJ's 2% target. Economists forecast a 2.0% year-on-year increase for June, down from 2.2% in May.
The data will be closely watched by investors and policymakers alike, as it may prompt the Bank of Japan to consider further policy normalization.