Japanese Yen strengthens against USD amid fresh verbal intervention from authorities
The Japanese Yen attracts some buyers after verbal intervention from government authorities.
Signs of easing inflation in Japan raise doubts about additional BoJ interest rate hikes this year.
Bets for smaller rate cuts by the Fed underpin the USD and should lend support to the USD/JPY.
The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Friday and for now, seems to have snapped a two-day losing streak to its lowest level since early August touched the previous day. The JPY strengthened a bit in reaction to verbal intervention from Japanese authorities and stronger domestic inflation data, which provides the Bank of Japan (BoJ) room to raise interest rates.
Investors, however, seem convinced that the BoJ will forgo raising interest rates again this year amid uncertainty over the new political leadership's preference for the monetary policy and ahead of the general election on October 27. This, along with a positive risk tone, should keep a lid on any meaningful JPY appreciation on the back of the underlying strong bullish sentiment surrounding the US Dollar (USD).
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