Yen Weakens as Markets Anticipate US Inflation Data

The yen softened slightly against the dollar in trading thinned by a Japanese holiday, with the dollar trading at 146.87 yen, up 0.2% from late U.S. levels. Investors remain uncertain about the likelihood of a Federal Reserve rate cut next month, following a volatile week marked by a selloff across currencies and stock markets due to concerns over the U.S. economy and the Bank of Japan's hawkish stance.

The euro stood at $1.0918, and the dollar index was flat at 103.18. Despite stronger-than-expected U.S. jobs data leading markets to reduce bets on Federal Reserve interest rate cuts, investors remain skeptical about the Fed's ability to slow down rate cuts. Market participants are also keeping an eye on upcoming U.S. economic reports and the global central bankers' meeting at Jackson Hole for further cues.