Yen Gives Back Half of Tokyo's Record Buying Spree

The value of the Japanese Yen has given back roughly half of what Tokyo bought in August. The US Dollar is trading near 159.50 against the Yen, a gain of under a tenth of a percent after being bought for interest.

The two governments pledged to repeat their joint operation, which added close to two yen in four sessions without any news driving it. This exchange rate has taken back four yen without being punished and is now running that test one session at a time.

American inflation matched consensus, with the headline Consumer Price Index (CPI) at 0.1% MoM and 3.4% YoY. The Federal Reserve's 3.50% to 3.75% band against Japan's 1.00% interest rate means 275 basis points get paid every day the price does not move, and no meeting this year carries a cut.

Japanese producer prices are set to release tonight at 23:50 GMT and carry a 0.6% MoM consensus after 0.4%, with the annual rate seen accelerating to 7.4% from 7.1%. Tokyo has already proved it will pay for the early-August spike low just above the 155.00 handle.