US Dollar Falls to Two-Month Low Against Yen Amid Suspected Intervention

The US dollar plummeted to a two-month low against the Japanese yen on July 30, following suspected intervention by Tokyo financial authorities and soft economic data from the United States.

The greenback dropped 2.6 percent to reach 159.225 yen, its weakest performance since May 14, after inflation in the US slowed down in June.

Market experts attributed the sharp move to official foreign exchange intervention aimed at propping up the languishing currency.

Tom Nakamura, Head of Fixed Income and Currencies at AGF Investments, said 'the suddenness and degree of the move in dollar/yen suggests intervention.'