Currency markets await key US inflation data amid yen intervention threats
Yen rangebound but intervention risk high as Japan warns of "decisive steps" against excessive currency moves.
The currency market has been largely rangebound this week, with the dollar's dominance prevailing as traders eye upcoming US inflation figures.
The Japanese yen (USD/JPY) traded at 151.41 per dollar on Thursday morning, little changed from the previous session's 34-year low of 151.97. Speculation is heightening over potential intervention by Japanese authorities to support the battered currency.
Japan's finance ministry, central bank and financial watchdog convened an emergency meeting on Wednesday, indicating readiness to tackle "disorderly and speculative" yen moves. Finance Minister Shunichi Suzuki warned of taking "decisive steps" if excessive currency volatility persists.
Berto Tordecilla
Verbal threats of intervention have so far failed to arrest the yen's slide, with Japanese officials last resorting to currency market action in 2022 after issuing similar warnings.
All eyes are now on Friday's US core PCE price index data, the Fed's preferred inflation gauge, for potential currency catalysts. However, the market response may be muted given the Easter holidays.
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