Yen Retreats Ahead of US Inflation Test
The Japanese yen depreciated past 143 per dollar, paring gains from last week as the dollar rebounded ahead of key US inflation data that could offer clues on the path for expected Federal Reserve interest rate cuts.
Traders also dialed back bets on a larger Fed rate cut this month amid a mixed August jobs report, while analysts suggested an aggressive move could send the wrong message to the markets. Meanwhile, the yen surged nearly 3% last week and climbed to an almost year-to-date high on bets that the Bank of Japan will hike rates further amid solid growth, rising wages and persistent inflationary pressures.
On the data front, final figures showed that Japan's economy grew an annualized 2.9% in the second quarter, lower than the advance figure of 3.1% and market forecasts of 3.2%.
Source : Trading Economics
