Yen Stabilizes Amid Inflation Data, Potential September Rate Hike

The Japanese yen has stabilized around 159 per dollar on Friday after experiencing high volatility earlier in the week.

This comes as data showed Japan's inflation rate accelerated for the second consecutive month, supporting the notion that the Bank of Japan (BOJ) may raise interest rates soon.

BOJ Governor Kazuo Ueda hinted at a possible normalization of policy, potentially starting as early as September. This would mark a faster pace than previously anticipated.

The yen initially surged by nearly 1% on Wednesday after the US Treasury Department announced larger debt buybacks to control borrowing costs. However, it quickly gave back over half of those gains due to concerns that this measure may only provide temporary relief.