The Japanese yen traded near 154.3 per dollar on Friday, holding steady after modest gains in the previous session, as investors assessed the latest economic data.
Yen holds ground as traders assess economic data
Japan's headline inflation rate eased to 2.3% in October, the lowest in nine months, while the core inflation rate also slowed to 2.3%, a six-month low, slightly exceeding expectations of 2.2%. Separately, manufacturing activity in Japan contracted more than anticipated in November, though the services sector showed growth. Bank of Japan Governor Kazuo Ueda hinted at the possibility of another rate hike as early as December, citing the yen's recent weakness.
Government considers new stimulus package
Additionally, Prime Minister Shigeru Ishiba’s government is reportedly considering a $90 billion stimulus package to alleviate the burden of rising costs on households. Despite these developments, a strong US dollar and elevated US Treasury yields limited further gains for the yen.
