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Yen Loses Modestly But Remains Tentative Amid Rising Inflationary Outlook

Published on Aug 21, 2023 14:41

The Japanese Yen eased a bit today but sentiments remained cautious for the currency as signs of increasing intervention from monetary authorities dominated the proceedings. USDJPY had slipped last week, easing from a near eight month high and dipped towards 1.4490 mark. The pair currently quotes at 145.68, up 0.28% on the day amid mixed moves in risky assets. Meanwhile, Japan`s Ministry of Finance will raise its assumed long-term interest rate to 1.5% in the fiscal 2024/25 from a record-low 1.1% for fiscal 2023/24, according to media reports. Japan July national CPI ex-fresh food and energy rose by 4.3% on year from 4.2% y/y in June and matched May as the largest increase in 42 years. This increased inflationary trajectory is likely to cap weakness in the Yen in near term. On the NSE, the JPYINR futures are in red, down 0.17% at 57.16 after moving up above 57.30 mark in early trades.

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