The yen was poised for its strongest week in nearly three months on Friday as traders unwound their long-held bets against the frail currency ahead of crucial U.S. inflation data that could cement rate cut expectations.
The yen has dominated the currency markets this month, surging to a near three-month high of 151.945 per dollar on Thursday after starting the month languishing at 38-year lows of 161.96 per dollar.
On Friday, the yen was last at 153.625, set for a 2.3% rise for the week, its biggest weekly gain since late April-early May as a global stocks rout also drove investors towards safe assets, including yen.
Investor attention on Friday will be on the U.S. personal consumption expenditure data the Federal Reserve’s favoured measure of inflation. The PCE data is expected to come in at 0.1% on a monthly basis.
The dollar index , which measures the U.S. unit versus six rivals, was little changed at 104.35. The euro was a tad stronger at $1.0853 but is down 0.35% for the week, its steepest weekly decline since early June.
The dollar found its footing after data on Thursday showed the world’s largest economy expanded faster than expected and inflation slowed in the second quarter.
The Australian dollar was 0.15% higher at $0.65475, just a shade above the near three-month low it touched on Thursday. The souring risk sentiment this week has weighed heavily on the Aussie and the New Zealand dollar .
The Aussie is down 2% for the week, its worst weekly performance since November 2023. The kiwi was last at $0.5888, on course for 2% decline in the week.
Source : Reuters
