Yen Weakness Continues as Inflation Fears Drive Dollar Buying

The Japanese yen continued to trade in the lower 159 range against the dollar in Tokyo on the morning of February 27th. As of 10:00 a.m., the dollar stood at 159.18-19 yen, up 0.18 yen from the previous day.

Against the euro, the yen firmed slightly to 185.55-56 per euro, up 0.01 yen from the prior session.

The U.S. Personal Consumption Expenditures (PCE) price index released on February 26th showed growth exceeding market expectations, intensifying wariness over additional rate hikes by the U.S. Federal Reserve Board (FRB).

Expectations that the FRB will maintain its tightening stance for an extended period resurfaced in the market, providing a tailwind for dollar buying.