Japanese yen falls on dollar strength

The Japanese yen weakened past 157 per dollar on Friday, slipping for a fourth consecutive session.

The currency has been weighed down mainly by the dollar’s strength as investors digested a series of US economic data and assessed the Federal Reserve policy outlook.

The yen’s decline occurred despite positive domestic indicators, including a 2.9% increase in household spending in November, supported by winter-related purchases and easing inflation pressures.

However, real wages fell 2.8% for the month as inflation outpaced wage growth, presenting a challenge to the Bank of Japan’s plans for further tightening.

Earlier this week, Governor Kazuo Ueda reiterated that the central bank would continue raising interest rates if economic and price developments move in line with forecasts, signaling a cautious but flexible approach to monetary policy.