Yen Volatility Amid Speculation of Tokyo Intervention

The yen experienced significant volatility after Japan's currency surged against the dollar following cooler U.S. CPI data, prompting speculation of Japanese intervention. Traders await confirmation from data at month-end about potential intervention. The uncertainty led to cautious trading as seen in the yen's fluctuating value against major currencies. Speculation arose that the Bank of Japan might have intervened to support the yen, while Asian stocks responded positively to expectations of a Federal Reserve rate cut. Market analysts noted skittishness among investors amid the yen's erratic movements and the lack of clear communication from authorities regarding interventions.