The Japanese yen held firm around 142.9 on Thursday, after gaining nearly 1% in the previous session, supported by broad dollar weakness following disappointing US economic data.

Recent indicators showed a sharp slowdown in private-sector hiring and an unexpected contraction in the US services sector, stoking fears that trade policy uncertainty is beginning to weigh on the broader economy.

Domestically, data revealed a fourth consecutive decline in real wages in April, as inflation continued to outpace nominal wage growth. This deepens concerns over Japan's economic outlook, especially as global uncertainty grows amid rising US tariffs.

The weak wage data also complicates the Bank of Japan's path toward policy normalization. However, BOJ Governor Kazuo Ueda reaffirmed on Tuesday that the central bank remains prepared to raise interest rates if economic and inflation forecasts are met, reinforcing expectations of a gradual tightening cycle.

Source: Trading economi