Market Update – Japanese Yen Strengthens on Inflation Figures
Arslan Butt • 1 min read
BOJ Core CPI y/y – Traders, the CPI accounts for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
That being said, the Japanese inflation figure has surged to 0.6% vs. 0.5% forecast. However, it’s still below Bank of Japan’s 2% target.