The GBP/JPY currency pair scaled a fresh 12-week peak on Tuesday, as the Japanese Yen continued struggling, while data showed UK wage growth had decelerated in the three months to September.
Average weekly earnings, including bonuses, rose 7.9% year-on-year to GBP 673 per week in the three months to September, compared with market expectations of a 7.4% growth.
Total pay growth was 8.2% YoY in the three months to August.
Though the lowest since May, wage growth still remained elevated, largely impacted by the NHS and civil service one-off payments made in July and August, according to the Office for National Statistics.
In the latest period, wage growth was the highest in the public sector, 8.6%, while private sector wages increased 7.7% YoY.
Regular pay, excluding bonuses, rose 7.7% year-on-year to GBP 621 per week in the three months to September, while matching market consensus.
UK’s adjusted experimental unemployment rate was reported at 4.2% in the three months leading up to September, or unchanged compared to the April to June period.
UK’s adjusted employment rate dropped 0.1% to 75.7% during the period, while the economic inactivity rate was unchanged at 20.9%.
Meanwhile, Japan’s Finance Minister Shunichi Suzuki said on Tuesday that the government would take all necessary measures to respond to weakening Yen.
A weaker currency benefits exporters’ profits and burdens other companies and households with higher import bills.
“What’s important is to maximize positive effects from the weak yen while mitigating negatives,” Japan’s Finance Minister told reporters.
As of 8:33 GMT on Tuesday GBP/JPY was inching up 0.08% to trade at 186.382. Earlier in the session, the minor Forex pair went up as high as 186.515. The latter has been the pair’s strongest level since August 22nd (186.764).