Yen stays near intervention watch as USD/JPY hovers 160
The Japanese yen trades around 159.3 per dollar, hovering near 160, while traders watch for further intervention amid persistent weakness and rate-differential pressures.
The Japanese yen traded around 159.3 per dollar on Thursday, hovering near the key psychological level of 160 per dollar and keeping traders on alert for further intervention from authorities amid persistent weakness.
The currency remained pressured by longer-term fundamentals, including wide interest rate differentials, mounting fiscal concerns and elevated energy and import costs.
The yen also struggled to gain momentum even after subdued US inflation data reduced pressure on the Federal Reserve to raise interest rates in the near term.
In Japan, producer prices rose 7.2% in July, easing slightly from 7.3% in June and coming in below forecasts of 7.4%.
Meanwhile, the Bank of Japan highlighted growing risks of accelerating inflation in its summary of opinions from the July meeting, with one board member suggesting that the pace of interest rate hikes could accelerate.