SINGAPORE : The Japanese yen fell the most against a resurgent U.S. dollar on Friday, as a two-day rally in equities conceded to market expectations that the Fed will have to do a lot more to contain inflation.
The Japanese yen weakened 0.12 per cent to 133.19 per dollar, while sterling was last trading at $1.2184, down 0.23 per cent on the day.Even the kiwi, supported by expectations of a big rate rise in New Zealand next week, fell 0.16 per cent versus the greenback to $0.643. Thursday's data showed U.S. producer prices unexpectedly fell in July amid a drop in the cost of energy products. That followed Wednesday's surprise news that consumer prices were unchanged in July due to a drop in gasoline prices.