Yen Turbulence Amid US Inflation Report Fuels Market Volatility
The yen experienced significant volatility on Friday, reflecting investor anxiety following a cooler-than-expected U.S. inflation report. Speculation is high that Tokyo intervened to support the yen, which had spiked notably against the dollar. Meanwhile, Asian stocks edged higher on rising expectations for a September rate cut by the Federal Reserve.
![Yen Turbulence Amid US Inflation Report Fuels Market Volatility](https://devdiscourse.blob.core.windows.net/aiimagegallery/29_05_2024_08_56_28_2033914.png)
The yen experienced significant turbulence on Friday, oscillating between losses and gains as investor nerves were laid bare in the wake of a cooler-than-anticipated U.S. inflation report. Market chatter was rife with speculation that Tokyo had intervened to bolster the Japanese currency, triggering notable spikes against the dollar.
At the close, the dollar was 0.23% up at 159.24 yen, after hitting an intraday high of 159.45 yen and a low of 157.75 yen earlier in the trading session. Similarly, the euro and sterling both saw gains of 0.25% against the yen, rebounding from prior losses.
Despite the currency fluctuations, Asian stocks marked a weekly rise, buoyed by growing optimism for a September rate cut by the Federal Reserve. This sentiment was further bolstered by recent U.S. consumer price data, which increased market bets for imminent rate cuts. Oil prices also climbed, fueled by strong summer demand and signs of easing inflation.
(With inputs from agencies.)
ALSO READ
Dollar Dips Amid Federal Reserve Rate Cut Anticipation
Euro and Pound Surge Amid Oil Price Stabilization and Prospective Fed Rate Cuts
Global Markets Rally Amid Optimism on U.S. Rate Cuts
Global Markets Shaken by Geopolitical Tensions and Rate Cut Speculations
World Markets Unsettled Amid Middle East Tensions and Anticipated US Rate Cuts