Yen Strengthens Slightly on Signs of Japan's Inflation Picking Up
0036 GMT — The yen strengthens slightly against most other G-10 and Asian currencies on signs of Japan's inflation picking up, which could back the case for further BOJ rate hikes. Data released earlier showed consumer prices excluding volatile fresh food rose 3.5% in April from a year earlier, compared with March's 3.2% increase. However, U.S. tariffs on Japan's imports will probably generate a 'deflationary impulse' in Japan unless they can be negotiated away, CBA's Joseph Capurso says in a research report. 'Therefore, the BOJ's next rate hike is uncertain,' the head of International and Sustainable Economics adds. USD/JPY edges 0.1% lower to 143.82; AUD/JPY is down 0.1% at 92.24. (ronnie.harui@wsj.com)
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