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Japanese Yen Languishes Near One-Week Low Against USD As Traders Await US CPI Report
Tuesday, 12 August 2025 12:53 WIB | USD/JPY |USD/JPY,

The Japanese Yen (JPY) sticks to its negative bias for the third straight day against a broadly flat US Dollar (USD), allowing the USD/JPY pair to stand firm just below mid-148.00s, or over a one-week high touched during the Asian session on Tuesday.

The domestic political uncertainty, along with the potential negative impact of higher US tariffs on the economy, suggests that the prospects for further policy normalization by the Bank of Japan (BoJ) could be delayed further. This, along with a positive risk tone, continues to undermine the safe-haven JPY.

That said, an upward revision in the forecast for inflation by the BoJ in July leaves the door open for an imminent rate hike by the end of this year. This marks a significant divergence in comparison to dovish Federal Reserve (Fed) expectations, which caps the US Dollar (USD) and offers some support to the lower-yielding JPY.

Traders also seem reluctant and opt to wait for the release of the US inflation figures, which will drive the USD demand and provide a fresh directional impetus to the USD/JPY pair later during the North American session.(alg)

Sumber: Fxstreet

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