Yen Softens Despite Rate Hike Discussion

In Asian trading, the USD/JPY pair advanced by 0.3% to 155.87, with the Japanese yen remaining under pressure despite hawkish sentiments expressed by Bank of Japan (BOJ) officials.

The BOJ’s summary of opinions released earlier on Thursday revealed that board members were largely in favor of maintaining a stance supportive of interest rate hikes during their April policy meeting.

BOJ Governor Kazuo Ueda also cautioned that any inflationary pressures resulting from yen weakness could prompt monetary tightening by the central bank.

Nevertheless, the yen’s decline has persisted even amid speculation of intervention by Japanese authorities.

Meanwhile, the USD/CNY pair rose by 0.1% to 7.2260, with the Chinese yuan struggling to sustain earlier gains following data indicating stronger-than-expected Chinese imports in April, signaling resilience in domestic demand.

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