Yen hovers near 160 as intervention risks keep traders on edge

The Japanese yen remained under pressure on Thursday, with USD/JPY hovering around 159.3 as the pair edged closer to the closely watched 160 mark, reviving concerns that Japanese authorities could step in again to support the currency. The yens weakness comes despite softer-than-expected pressure on US monetary policy, with subdued July inflation reducing expectations for a near-term Federal Reserve rate hike. The US Dollar Index meanwhile steadied near 100, keeping the greenback broadly resilient. On the domestic front, Japans producer inflation eased only marginally to 7.2% in July from 7.3% in June, while the Bank of Japans increasingly hawkish tone and signals that rate hikes could accelerate offer some support to the yen.

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