JPY remains weak. Overview for 05.03.2024

The Japanese yen remains under pressure against the US dollar. The current USDJPY exchange rate stands at 150.50.

The instrument hovers within a sideways range, but the yen continues to attract bearish interest.

Japan published the February Core CPI for Tokyo. This indicator is considered leading for overall inflation estimation. The index saw a 2.5% y/y increase compared to 1.8% in January, in line with expectations. This is good news, as an uptick in core inflation in the most economically active region suggests a broader inflationary trend across the country.

The Japanese PMI in the services sector for February dropped to 52.9 points from 53.1 points in January. Nevertheless, it surpassed expectations, signalling a positive trend.

From the Bank of Japan, the market is awaiting clear indications about the timing of interest rate hikes. The BoJ remains the only major CB that maintains a negative cost of lending as it struggles to stimulate inflation.