Yen Stumbles To Two-Week Low Against Dollar; JPYINR Down 1.5%

Published on Jul 21, 2023 16:58

USDJPY climbed to a two week high on Friday tracking broad strength in the dollar overseas. The dollar index is seen reclaiming 100 mark after wallowing near 15 month lows early this week. An improving labor market scenario in the US as shown in yesterday`s jobless claims paves way for a Federal rate hike, increasing interest rate differential between the two countries that is not auguring well for the Japanese currency. Yen stumbled sharply on Friday and the USDJPY pair is quoting at 141.74, up more than 1% on the day. Meanwhile, data from Japan showed inflation edged up in June by 3.3%. This is slightly higher than May`s figure of 3.2% but remains above the Bank of Japan`s 2% target. Investors are now focusing on FOMC and the Bank of Japan`s (BoJ) interest rate decision scheduled for next week. On the NSE, JPYINR futures are down 1.5% on the day at 57.92.