Yen Recovers Ahead of US Inflation Report

The Japanese yen has recovered some ground against the US dollar in Asian trading on Wednesday, as market participants position ahead of the latest US inflation report.

Traders are watching the release closely for signs that price pressures are cooling enough to allow the Federal Reserve to begin cutting interest rates.

Economists expect the annual Consumer Price Index (CPI) to have eased slightly in the latest month, but core inflation is projected to remain sticky, reflecting persistent price pressures in services and housing.