Business

The USD/JPY currency pair experienced a decline during the New York session, losing over 60 pips and trading at the 139.35 area. This drop was largely attributed to the Greenback facing significant selling pressure following the release of the US Producer Price Index (PPI) data, which revealed lower-than-expected 'factory gate' inflation. The weakening of US bond yields, along with a surge in stock prices, favored the JPY and contributed to the downward pressure on the USD. The PPI report, released by the US Bureau of Labor Statistics, indicated a monthly decrease of 0.3% in May, surpassing the anticipated 0.1% decline. Additionally, the year-on-year measure fell to 1.1%. Conversely, the Core PPI figure matched expectations, rising by 0.2% on a monthly basis, with the yearly measure standing at 2.8%. These disappointing PPI figures led to a decline in US bond yields across the curve, thereby further weighing on the USD. The 10-year bond yield fell to 3.79%, while the 2-year yie...