Yen steadies near 159 per dollar after Japan inflation data
The yen trades little changed around 159 per dollar on Friday after Japan’s inflation accelerated for a second consecutive month, keeping near-term Bank of Japan hike expectations in focus.
The Japanese yen was little changed around 159 per dollar on Friday after experiencing heightened volatility earlier this week, as data showed Japan’s inflation rate accelerated for the second consecutive month, strengthening the case for a Bank of Japan interest rate hike in the near term.
Markets are speculating on a possible move in September, with BOJ Governor Kazuo Ueda indicating that authorities could begin normalizing policy at a faster pace.
The yen jumped nearly 1% on Wednesday after the US Treasury Department announced larger debt buybacks aimed at containing borrowing costs, before giving back more than half of those gains a day later amid concerns that the US government’s plan may provide only a temporary solution.
The local currency also remained under longer-term pressure due to wide interest rate differentials, mounting fiscal concerns and elevated energy and import costs.