The Japanese yen rallied today as nation’s consumer inflation accelerated, reducing chances for additional stimulating measures from the central bank. The currency has troubles keeping gains, trimming its rally versus the US dollar and erasing it completely against the euro.
Japan’s core Consumer Price Index rose 3.2 percent in April after rising 1.3 percent in March. Tokyo core CPI was up 2.8 percent in May following the 2.7 percent increase the month before. The accelerating inflation suggests that the Bank of Japan has no need in stimulating the economy further.
USD/JPY went down from 101.78 to 101.49 before trading at about 101.70 as of 10:09 GMT today. EUR/JPY traded near its opening level of 138.42 following the drop to 138.07.
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