The US Dollar Index (DXY) tumbles on Thursday as a sharp surge in the Japanese Yen (JPY) fuels speculation that Japanese authorities intervened to support the currency.
USD/JPY plunged nearly 480 pips, falling below the psychological 160 mark and dragging the Greenback lower across the board
Tokyo has not officially confirmed any action. At the time of writing, the DXY, which tracks the US Dollar’s value against a basket of six major currencies, trades around 100, down nearly 0.80% on the day after touching 99.87, its lowest level since June 17. The Greenback also takes a hit from slower US growth.
The economy expanded at an annualized pace of 1.5% in the second quarter, falling short of the 2.1% forecast and slowing from the first quarter’s 2.1% growth, according to the US Bureau of Economic Analysis. Inflation data offer little help to the Dollar. The Core Personal Consumption Expenditures (PCE) Price Index rose 0.1% in June, down from 0.3% in May and below the 0.2% consensus forecast.