Yen Traders Brace for Risk of Deeper Drop on US Inflation Data
- Interest-rate differential has fueled down trend all year
- Japan’s finance minister warns government is ready to act
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Yen traders are bracing for US inflation data later Tuesday as a potential trigger to push the currency to a 33-year low and draw Japanese authorities into the market.
It is already trading at levels that saw intervention last year and on Monday came within a whisker of breaching the key 151.95 threshold versus the dollar. Japanese Finance Minister Shunichi Suzuki has warned repeatedly this week that the government will respond to excessive moves.