SINGAPORE : The yen was volatile on Monday after slipping to its lowest for the year against the dollar, breaching the key 145 level as traders warily looked for clues on possible intervention, while the dollar rose to touch a more than one month high.
The yen has fallen around 20 per cent since the Federal Reserve began rapidly raising rates to combat soaring inflation in March 2022, while the Bank of Japan remains stuck in an extremely accommodating stance. Saxo Markets strategists said this week's GDP and CPI data in Japan could be key, as well as U.S. data which could continue to push Treasury yields higher.
That comes after news on Thursday that consumer prices rose moderately in July. The PPI data cast some doubt on whether the Federal Reserve is done with its rate hike cycle. The dollar index, which measures the U.S. currency against six peers, tacked on 0.078 per cent at 102.94, its highest since July 7. The index is up 1 per cent for the month.