British Pound Stalls Against Rebounding Japanese Yen Amid Central Bank Shifts

The British Pound faces resistance in its recovery against the Japanese Yen, slipping from earlier highs as the Japanese currency regains momentum following a Ministry of Finance intervention, stronger than expected Tokyo inflation data, and a cautiously hawkish stance from the Bank of Japan, though experts remain skeptical about the longevity of the Yen's strength. Simultaneously, the British currency trades lower because financial markets have pared back expectations for Bank of England interest rate hikes after central bank commentary signaled that inflationary pressures are not overly concerning, prompting a sharp drop in the implied probability of a near term policy tightening.

The FTSE 100 index rose 83.33 points, 0.8%, at 10,980.60 on Friday morning, earlier hitting its best ever level of 10,985.46. It means the FTSE 100 is just a short stride away from the 11,000 threshold. It had only closed above 10,000 for the first time back in January and ended a day above 9,000 for the first time back in July 2025. The FTSE 250 added 140.22 points, 0.6%, at 24,219.36, and the AIM all-share added 3.26 points, 0.4%, at 768.16. In Paris, the CAC 40 was up 0.9%. The DAX 40 in Frankfurt rose 1.0%.