Japanese Yen Could Fall on Potentially Strong U.S. Inflation Print -- Market Talk

1224 GMT - The Japanese yen could fall if Wednesday's U.S. inflation data exceed forecasts, Capital Economics economist Jonas Goltermann says in a note. The risks are skewed towards a strong inflation print which would probably drive a rebound in U.S. interest-rate rise expectations after Friday's weaker-than-expected nonfarm payrolls report, he says. "We expect U.S. data to strengthen rather than weaken over the coming months, but that the Bank of Japan will pick up the pace of its policy tightening." A faster pace of Japanese rate hikes should prevent another major drop in the yen, he says. The dollar rises 0.7% to 158.79 yen after reaching an 10-day high of 158.88 earlier, according to LSEG. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 10, 2026 08:24 ET (12:24 GMT)