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10.06.202602:40:15UTC+00Yen Stays Under Pressure Despite Strong PPI Data

The Japanese yen traded around 160.3 per dollar on Wednesday, hovering near its weakest level since July 2024, even as the country’s wholesale inflation accelerated at its fastest pace in three years, driven by surging energy costs. Japan’s producer price index climbed 6.1% in May from a year earlier, up from a revised 5.3% increase in April and above market expectations of a 5.5% gain. The data reinforced expectations that the Bank of Japan will raise interest rates next week, as policymakers wrestle with mounting inflationary pressures stemming from the Middle East conflict and the yen’s sharp depreciation. Investors are also watching closely for hawkish signals from BOJ Governor Kazuo Ueda, with markets increasingly pricing in another rate hike in September and the potential for a third increase in December.

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