Lower-than-Expected U.S. Inflation Data Would Help Yen
Dow Jones21:02
1302 GMT - The risk of another sharp fall in the Japanese yen against the dollar could recede if Wednesday's U.S. inflation data come in lower than expected, Rabobank's Jane Foley says in a note. In this scenario, a potentially softer dollar combined with fears of further interventions to strengthen the yen could lower the odds of the dollar rising back above 160 yen, she says. While a move above 160 cannot be ruled out, Rabobank expects the dollar to trade at 158 yen as it anticipates that the Federal Reserve will refrain from raising interest rates this year. Japan's government will also need to make more effort to ease fiscal concerns to calm the yen, Foley says. The dollar trades steady at 159.28 yen.
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