Japanese Yen Retreats Amid Hotter Inflation and Strong Employment Data

The Japanese Yen has retreated despite hotter inflation and strong employment data, as investors focus on the upcoming Jackson Hole gathering of central bankers.

Tokyo's core inflation accelerated to 1.8% YoY in August, beating market expectations, while Japan's unemployment rate fell to 2.4%, its lowest level in 12 months.

Economists at Societe Generale highlight that the resumption of electricity and gas subsidies masked underlying price pressure, but note that 'underlying price pressure remains.'

The US Dollar has strengthened ahead of Federal Reserve Chair Kevin Warsh's speech at Jackson Hole, with markets looking for clues on how the Fed will respond to persistently elevated inflationary pressures.