(Bloomberg) -- The yen jumped more than 1% against the dollar as traders ramped up bets that the Federal Reserve will ease monetary policy this year on signs...
-- The yen jumped more than 1% against the dollar as traders ramped up bets that the Federal Reserve will ease monetary policy this year on signs US inflation pressures were easing.How One of the World's Oldest Hedge Funds Went Bankrupt Japan ’s currency climbed as much as 1.1% to hit 154.70 per dollar in New York trading Wednesday — forestalling the need for Japan ese authorities to step into the market to support the yen.
The dollar-yen pair “is by far the most sensitive USD-cross to moves in the US fixed-income markets and could move the most if the US rates investors do bring forward Fed rate cuts,” said Valentin Marinov, head of G-10 foreign-exchange research and strategy at Credit Agricole.Wednesday’s data revealed that the so-called core measure of US inflation — which excludes volatile food and energy costs — rose 0.3% from March, while year-over-year core price growth eased to 3.6%.
To stem losses, Japan is suspected to have bought the yen twice, in late April and then again in early May, spending about ¥9 trillion in total, according to Bloomberg calculations. The nation’s top currency official, Masato Kanda, has declined to comment on whether authorities had intervened. Despite Japan’s recent efforts, market watchers argue the yen continues to face long-term pressures. Former US Treasury Secretary Lawrence Summers said that currency interventions are ineffective at shifting exchange rates, even at the large magnitude that Japan is thought to have deployed.April's Consumer Price Index data was released on Wednesday, falling in line with expectations with a 3.4% year-over-year rise.
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