SINGAPORE - The yen was volatile on Friday after a sharp surge in the previous session in the wake of U.S. consumer prices unexpectedly dropping in June, stoking speculation that Tokyo had intervened to lift the currency away from 38-year lows.
The usual absence of any official comment on intervention leaves investors guessing and focus will now be on data due at the end of the month that shows whether authorities did step in or not. Tokyo intervened in April end and early May, spending roughly 9.8 trillion yen to support the currency. "Looks like it will be a volatile day today with markets nervous about intervention but carry still very attractive to short the yen and the shift in the fundamental story is only marginal after last night’s cooler U.S. CPI," said Saxo's Chanana.The surge in yen was triggered after data on Thursday showed U.S.
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