The dollar rose today, with data indicating a strong U.S. labor market that could prompt the Federal Reserve (Central Bank) to keep interest rates higher for longer, while the yen strengthened after Japan’s core consumer price inflation accelerated again in June.
Next week there will be meetings of central banks in Europe, Japan and the United States, while investors will analyse the data in order to better anticipate monetary policy paths.
The yen rose 0.08% to 139.97% to the dollar after Japan’s core consumer price index rose 3.3% in June from a year ago, in line with average market expectations, but remained above the Bank of Japan’s 2% target.
Meanwhile, data showed that the number of Americans applying for unemployment benefits fell unexpectedly last week, touching a two-month low indicating the continued strength of the labor market.
Markets expect the U.S. Central Bank to raise interest rates by 25 basis points (bps) next week, and have increased the prospects of continuing to raise interest after the data.
