Overview
- The yen traded in the low‑159s per dollar on Aug. 12–13, reversing roughly four yen of earlier gains that had briefly pushed the rate into the mid‑155s after the late‑July coordinated Japan–U.S. intervention.
- U.S. July consumer price index data showed slower year‑on‑year growth, which relaxed expectations for further Federal Reserve rate hikes and briefly supported yen buying in Tokyo morning trade.
- Persistent uncertainty over the situation in the Middle East and rising crude futures drew investors toward the dollar as a perceived safe asset, supporting dollar buying that offset the CPI‑driven yen recovery.
- Tokyo equities rallied on strength in U.S. semiconductor names and softer inflation concerns even as New York's Dow fell for a third day because of geopolitical worries, showing split market reactions to the same drivers.
- Market participants remain wary of further currency intervention, and traders say that the combination of geopolitical risk, oil‑driven worries about Japan's trade balance, and shifting U.S. rate expectations will determine whether the yen resumes sharper moves.