Yen Wavers Amid U.S. Inflation Data and Speculation of Tokyo Intervention
The yen saw volatility on Friday after data revealed falling U.S. consumer prices, sparking speculation of Tokyo's intervention. While officials remained tight-lipped on any actions, reports hinted at market interference. The currency, already at 38-year lows, fluctuated amidst investor nerves anticipating the Federal Reserve's rate cuts.
![Yen Wavers Amid U.S. Inflation Data and Speculation of Tokyo Intervention](https://devdiscourse.blob.core.windows.net/aiimagegallery/29_05_2024_08_56_28_2033914.png)
The yen experienced turbulence on Friday as investors reacted to data showing a drop in U.S. consumer prices, leading to speculation of intervention by Tokyo in the currency market. Despite the lack of confirmation from Japanese officials, market reports suggested possible interference.
The Japanese currency, which has been struggling at 38-year lows, showed signs of volatility with early trading swings before settling slightly weaker at 159.08 per dollar. Thursday's U.S. inflation report had hinted at easing prices, causing a brief surge in the yen and fueling expectations of a potential rate cut by the Federal Reserve in September.
Tokyo's chief currency diplomat, Masato Kanda, stated that authorities would take necessary actions in the foreign exchange market but did not confirm any intervention. Investors await further money market data later on Friday to glean more insight into the authorities' actions.
(With inputs from agencies.)
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