Yen continue to fall after inflation data

The Japanese yen dropped against dollar and other major currencies in early trades, after data released showing inflation slowed as expected by the Bank of Japan.

Governor Haruhiko Kuroda said earlier that inflation will ease in the coming period, before it accelerate again towards the central bank`s target of 2% by the end of this year. This comes as an immediate impact of raising sales tax to 8%; however, recovery in consumption remains low which is affecting inflation.

USD/JPY gained in early trades to record a high of 101.85, while the pair is currently trading around 101.76. Euro also strengthened against yen to record a high of 137.18, while it is currently hovering around 137.04.

As for New Zealand dollar, it is still trading at the lowest in six weeks against the American dollar, after the central bank governor signaled the end of interest rate hikes and the beginning of keeping the nation`s benchmark steady at the current level along with stable monetary policy, adding that NZ dollar is higher than its real value.

NZD/USD declined to 0.8559 and it is currently trading around 0.8574, while NZD/JPY slid to a six-week low at 86.91 and it is now hovering around 87.25.