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USD/JPY holds near 157 as weaker US data offsets cautious JPY sentiment
The yen steadied around 157.65 as US private hiring and services activity missed expectations, while traders weighed Bank of Japan signals on further rate hikes.
USD/JPY traded around 157.65 on Wednesday, little changed on the day, as weakness in the US dollar was offset by investors remaining cautious about the Japanese yen, according to FXStreet.
FXStreet cited softer US economic data weighing on the greenback. The ADP report showed the US private sector added 44K jobs in July, below the 70K consensus and after 98K in June, while the ISM services PMI came in at 54.1 in July, slightly under expectations of 54.5. The Employment Index fell to 47.4 from 51.2, pointing to softer hiring conditions.
The dollar was also supported by sentiment linked to US-Iran developments, FXStreet said. It noted reports that the US Treasury Department lifted selected Iran-related sanctions, removing restrictions on two aircraft and three airlines, and separate reports suggesting a draft Oman-Iran agreement has been finalized and awaiting approval from Tehran.
On the yen side, FXStreet said traders continued to digest minutes from the Bank of Japan June policy meeting, where policymakers were already debating further rate hikes in response to inflation risks. A Reuters poll also indicated most FX strategists believe Japanese intervention alone would not sustainably support the yen, keeping attention on the BoJ rate outlook and the US-Japan interest rate differential.
Latest closeUSD/JPY 157.75 ▲0.1%