USD higher as yen strengthens on intervention speculation
The US dollar finished mixed on Friday, with the dominant story remaining the Japanese yen.
The yen strengthened for a second consecutive day as speculation intensified that Japanese authorities were preparing to support the currency.
Additional reports suggested banks had been instructed to stand ready to exchange yen for euros, reinforcing the belief that policymakers remain uncomfortable with the yen’s recent weakness.
The Bank of Japan left its policy rate unchanged at 1.00%, as widely expected, while the US Q2 Employment Cost Index rose 0.9% versus 0.8% expected.