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Friday, June 21, 2024

USD/JPY Steady as Tankan Survey Shows Resilient Business Sentiment

Key Takeaways:

  • The USD/JPY currency pair remained stable, trading around the 151.4 level following the release of the Tankan Large Manufacturers Index.
  • The headline Tankan Large Manufacturers Index for Q1 2024 came in at 11, above the forecast of 10 but below the previous quarter’s 13.

The US dollar held steady against the Japanese yen on Sunday following the release of the Tankan survey from the Bank of Japan. The USD/JPY currency pair traded around the 151.4 level, little changed from last week’s close.

The headline Tankan Large Manufacturers Index for Q1 2024 came in at 11, above the forecast of 10 but below the previous quarter’s 13.

The stable reading could mean that sentiment among big Japanese manufacturers remains resilient despite concerns about the economic outlook. It indicates that the recovery in Japan’s factory sector is holding up well so far this year.

In its quarterly summary of opinions from the March monetary policy meeting, released on March 28, 2024, the Bank of Japan noted that “Japan’s economy has recovered moderately, although some weakness has been seen in part.” Policymakers expect the recovery to continue as corporate profits feed through to strong wage growth, supporting a cycle from income to spending.

The BoJ acknowledged the higher-than-expected wage hikes seen in this year’s spring labor negotiations as a positive development. However, officials still want to assess the pass-through of higher costs to consumer prices, especially among smaller firms, to confirm that the wage-price cycle is firmly in place.

Lazarus
Lazarushttps://ljlnews.com
Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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