The post Japanese Yen declines as business activity turns contractionary appeared on BitcoinEthereumNews.com.

The USD/JPY pair holds its position near a 38-year high of 161.75. The Jibun Bank Japan Services PMI was revised downward to 49.4 in June, marking a reversal from May’s 53.8. The US Dollar edges higher due to a recovery in yield on a 2-year Treasury bond. The Japanese Yen (JPY) holds losses on Wednesday, remaining near its low of 161.75, a level not seen since 1986, recorded in the previous session. This decline can be attributed to final data indicating that Japan’s business activity turned contractionary in June. Market participants focus on the possibility of foreign exchange (FX) intervention from the Bank of Japan (BoJ), which could support the JPY and limit the upside of the USD/JPY pair. Japan’s 10-year government bond yield increased to a near 13-year high of 1.11%. Traders continue to evaluate the Bank of Japan’s monetary policy outlook amid a sharply depreciating Japanese Yen, which drives up import costs and contributes to inflationary pressures. Additionally, the central bank also announced plans to unveil a strategy for winding down its bond-buying program in July. The US Dollar (USD) halted its four-day losing streak due to a recovery in yield on a 2-year Treasury bond, which stands at 4.75% at the time of writing. Traders await the release of the US ADP Employment Change, ISM Services PMI for June, and the FOMC Minutes scheduled for Wednesday. Daily Digest Market Movers: Japanese Yen declines due to softer Services PMI The Jibun Bank Japan Services PMI was revised downward to 49.4 in June from May’s 49.8 reading. This marks a reversal from May’s 53.8 and represents the first decline in services activity since August 2022. The Federal Reserve (Fed) Chair Jerome Powell turned slightly dovish on Tuesday. Powell said that the Fed is getting back on the disinflationary path.…

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Filed under: News - @ July 3, 2024 6:24 am