Japan’s yen tumbles to 34-year low; US dollar gains after inflation data

New York, Apr. 27 (BNA): The dollar surged to a fresh 34-year high against the yen on Friday, bolstered in part by U.S. inflation data that showed no signs of easing, coming in line with forecasts and affirming expectations that the Federal Reserve will likely delay cutting interest rates to later this year.

The dollar’s peak against the yen came after the Bank of Japan kept interest rates steady at its end of its two-day policy meeting, although it flagged future rate hikes. With the yen at multi-decade lows, market participants were on alert for possible intervention from Japan to prop up its currency, Reuters reported. 

The dollar hit 157.795 yen , the highest since June 1990, and was last up 1.3% at 157.71. The greenback briefly dropped as low as 154.97 earlier in the session, triggering speculation that the BOJ, which acts on the behalf of the Ministry of Finance, may have checked currency rates, supposedly a sign that the central bank is preparing to intervene.

It was not immediately clear what caused the move.

The greenback was on track for a 2% weekly gain against the Japanese currency, the largest since mid-January.

Y.R