Japanese Yen gains against weaker US Dollar following softer Q2 GDP data
USD/JPY loses ground for the second successive day, trading around 159.10 during the Asian hours on Monday. The pair depreciates as the Japanese Yen JPY) remains stronger following the release of Japan’s preliminary Q2 Gross Domestic Product (GDP) data.
The Japanese Yen (JPY) has strengthened against the US Dollar (USD) after Japan's preliminary second-quarter (Q2) Gross Domestic Product (GDP) data released on Monday. The US Dollar weakened as the Japanese Yen remained robust following the GDP release. Japan's economy grew by just 0.3% in Q2 2026, slightly below market expectations of a 0.5% expansion.
On an annualized basis, Japan's GDP grew by 1.1%, below forecasts of 2.0% and the previous quarter's 1.8% growth. This underwhelming performance complicates the Bank of Japan's (BoJ) plans for further policy normalisation, as the central bank has relied on steady domestic demand to justify additional rate hikes since moving away from ultra-easy monetary policy.
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