Japanese Yen Surges on Suspected Intervention Following Weaker US Q2 GDP and Easing PCE Prices

The Japanese yen rallied sharply to a 2.5-month high against the dollar on signs of suspected intervention by Japanese authorities in the currency market. This move followed weaker-than-expected US Q2 GDP growth, which rose only 1.5% (annualized) against expectations of 2.0%, and the US June core PCE price index easing to 3.3% year-over-year, aligning with expectations. These dovish US economic indicators, combined with the yen's surge, led to a significant weakening of the dollar.