The Japanese yen is declining against the US dollar on Wednesday. The current USDJPY exchange rate stands at 157.22.
Japan’s latest statistics showed an increase of 2.4% y/y in producer prices in May, revealing a significant acceleration compared to April when the indicator rose by merely 1.1%. The current reading is the highest since last August. Data also exceeded forecasts.
The focus is shifting to Friday when the Bank of Japan will hold a meeting. The main issue is whether the regulator will reduce the volume of monthly bond purchases, with no one hoping for any changes in the interest rate.
Last week, Bank of Japan Governor Kazuo Ueda confirmed that the central bank will gradually reduce its huge balance sheet. However, the timelines of this work have yet to be specified.