The Japanese yen increased slightly to around 151.6 per dollar on Wednesday but remained near its lowest level in two weeks as it strengthened ahead of a key US inflation report.
Yen edges up as BOJ rate hike uncertainty grows
Investors digested mixed economic data from Japan. The Reuters Tankan index turned negative in December, while the BSI manufacturing sentiment showed improvement for the fourth quarter. Additionally, producer prices surged at their fastest pace in 16 months in November. On the monetary policy front, markets are divided on whether the Bank of Japan will raise rates in December or January.
BOJ rate hike outlook clouded by mixed economic signals
BOJ Governor Kazuo Ueda recently indicated that a rate hike might be imminent, citing strong economic performance. At the same time, board member Toyoaki Nakamura expressed concerns about the sustainability of wage growth and signs of economic weakness, adding uncertainty to the outlook.
