Yen Escapes Intervention Zone Helped by Decline in US Yields
- Strengthening in yen eases Japan’s need to intervene in market
- Like 2022, US inflation slowdown boosts yen against dollar
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The yen is strengthening away from areas that prompted suspected intervention in recent weeks, and it’s starting to look similar to 2022 when weaker US economic data did the job for Japanese officials.
Signs of easing US inflation pressures boosted bets the Federal Reserve will ease monetary policy this year. That caused the dollar to weaken broadly against peers, and the yen was one of the biggest-gaining major currencies. It rose as much as 0.8% versus the greenback on Thursday, even as data showed Japan’s economy shrank more than expected in the first quarter.