Volatile Yen Amid Intervention Speculations Following U.S. CPI Drop
The Japanese yen fluctuated on Friday due to investor concerns after sharp gains in response to U.S. consumer prices falling unexpectedly. There are speculations that Tokyo may have intervened in the currency market. This volatility is tied to conjectures about potential Federal Reserve rate cuts and Tokyo's market interventions.
![Volatile Yen Amid Intervention Speculations Following U.S. CPI Drop](https://devdiscourse.blob.core.windows.net/aiimagegallery/29_05_2024_08_56_28_2033914.png)
The Japanese yen eased on Friday, reflecting investor nervousness following a sharp surge the previous session after unexpectedly low U.S. consumer prices data. Amid volatility, there have been speculations that Tokyo has intervened in the currency market, a move not officially confirmed yet.
In early trading, the yen swung between gains and losses, ending slightly weaker at 159.08 per dollar, down 0.19%. The currency had spiked nearly 3% to 157.40 on Thursday after the U.S. inflation report spurred bets on Federal Reserve rate cuts. Tokyo's top currency diplomat, Masato Kanda, hinted at possible interventions without confirming any direct actions.
As rumors persisted, focus shifted to money market data due later to provide potential insights into any government intervention. Reports from Japanese media outlets added to the uncertainty, indicating possible market actions by Tokyo. The yen's volatility underscores the cautious sentiment amid attractive carry trade opportunities and shifting economic narratives.
(With inputs from agencies.)
ALSO READ
Rohingya Refugees Demand Safe Return Amid Continued Volatility
Brazil's Central Bank Chief Warns of Market Volatility
Brazil's Central Bank Struggles with Market Volatility
Global Markets Wobble Amid Interest Rate Speculations and Middle East Tensions
Dollar Dips Amid Federal Reserve Rate Cut Anticipation