Yen Holds Gains as Fed Rate Hike Bets Fade

The Japanese yen has held modest gains near the 158.50 mark as bets for an immediate interest rate hike by the US Federal Reserve have faded.

The USD/JPY pair struggled to capitalize on its previous day's recovery from the 158.00 mark, a one-and-a-half-week low, and met with fresh supply on Friday.

Spot prices stuck to modest intraday losses around the 158.60 area through the first half of the European session and remained on track to end in the red for the first time in three weeks.

The Japanese Yen got a minor lift after domestic data showed that core consumer inflation accelerated during July, bolstering the case for an interest rate hike by the Bank of Japan.