Anna 
The Japanese Yen (JPY) exhibited a slight upward movement after the Bank of Japan (BoJ) announced on Thursday that it would leave the amounts of Japanese government bonds (JGB) unchanged compared to the previous operation. This decision follows the BoJ’s reduction of the amount of 5-10 year bonds it bought in a scheduled operation over a month ago.
Despite positive Purchasing Managers Index (PMI) data from Japan indicating that private sector growth reached a nine-month high in May, with manufacturing activity returning to expansion, the JPY refrained from significant appreciation.
Meanwhile, the US Dollar (USD) maintained its strength as investors awaited the release of US PMI data scheduled for Thursday. The Greenback had gained ground on Wednesday following the release of minutes from the latest Federal Open Market Committee (FOMC) policy meeting.
During the FOMC meeting, Federal Reserve (Fed) policymakers expressed concerns about the slow progress of inflation, which has exhibited greater persistence than initially anticipated at the beginning of 2024. Consequently, the Fed remains cautious about moving forward with interest rate cuts, supporting the firmness of the USD.
