Dollar steadies, yen teeters ahead of key US inflation data
dollar steadied on Wednesday in the wake of more strong U.S. economic data, nudging the Japanese yen closer to a test of levels that drew official market intervention back in 2022.
The yen traded at 151.52 per dollar early in the Asia session, within a whisker of 151.94 where Japanese authorities stepped in during October 2022 to buy the currency.
For the quarter ending later this week the yen is the worst-performing major, down more than 7% on the dollar even after Japan's exit last week from negative interest rates.
Officials have been making near daily warnings against speculative moves and markets are jittery about a test of 152 per dollar as Finance Minister Shunichi Suzuki said Japan won't rule out any steps if it thinks the yen is falling too fast.
«The (Bank of Japan) hike was seen as a non-event but it ended eight years of negative rates and unorthodox policy and with it also their forward guidance,» said Bob Savage, BNY Mellon's head of markets strategy.
«The risk of a more hawkish BOJ and more yen focus from the BOJ and (finance ministry) remain in play.»
BOJ board member Naoki Tamura will make a speech and hold a news conference during the Asia session on Wednesday.
China set a firm onshore fixing for the yuan, as it leans against market selling pressure that sent the currency down sharply to a four-month low on Friday. It was steady at 7.25 per dollar in offshore trade on Tuesday.
Australian data published in the morning showed inflation holding at a two-year low of 3.4% in February, reinforcing
