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fxAug 13, 2026, 10:51 AM

Yen Needs Support as Dollar Strengthens Despite Cooler US Inflation

The dollar has strengthened despite slowing US inflation and reduced Fed rate-hike expectations, leaving the yen under pressure.

USDJPY

The US dollar has proved the sceptics wrong, strengthening even as US inflation slows and the chance of Fed rate hikes declines.

In July, consumer prices slowed from 3.5% to 3.4%, while core inflation fell from 2.6% to 2.5%.

That resilient dollar backdrop leaves the yen needing support, as the Japanese currency remains under pressure against a stronger greenback.

Source: FXStreet Forex News