Key Facts
• On August 12, the yen fell to the mid-148 range against the dollar.
• The decline is driven by concerns over the US Consumer Price Index (CPI).
• The CPI is expected to strengthen due to tariff policy impacts.
• On August 11, the yen hit 148.25, its lowest since August 1.
• Bloomberg Dollar Spot Index rose by 0.3% on August 11.
• Mitsui Sumitomo Trust Bank predicts limited dollar gains despite CPI strength.
• Nomura Securities sees dollar-yen trading around 148 during Asian hours.
• Analysts warn strong CPI could raise stagflation concerns, limiting further dollar buying.
Summary
The Japanese yen weakened to the mid-148 range against the US dollar on August 12, driven by market anticipation of a strong US Consumer Price Index (CPI) report. Analysts suggest that tariff policies may contribute to CPI strength, prompting dollar buying. On August 11, the yen briefly fell to 148.25, its lowest level since August 1, while the Bloomberg Dollar Spot Index rose 0.3%. Despite this, experts from Mitsui Sumitomo Trust Bank and Nomura Securities predict limited dollar gains, with trading expected to hover around 148. Concerns over stagflation could further restrict aggressive dollar buying even if the CPI report is strong.
