Yen Bounces on Inflation Fears
The Japanese yen is attempting to recover from its recent low of 159.45 against the US dollar, as traders position ahead of the latest US inflation report.
A softer-than-expected inflation reading could dampen expectations of further Fed rate hikes, potentially weakening the dollar and giving the yen additional support.
However, the yen's upside remains limited by the wide interest rate differential between the US and Japan.