Overview

• The yen slid to around ¥148.26–¥148.40 per dollar on Aug. 12 in Tokyo, marking roughly a one-yen drop from the previous week.
• Dollar buying strengthened as investors reacted to a widening gap between U.S. and Japanese long-term interest rates after U.S. yields narrowed their declines.
• Record highs in the Nikkei 225 eased risk aversion and dampened demand for the yen as a safe-haven asset.
• Trading saw fluctuating liquidity and risk sentiment across New York and Tokyo sessions ahead of key U.S. data.
• Traders are watching tonight’s U.S. CPI report closely, warning that stronger inflation could drive U.S. rates and boost dollar strength.