Japanese yen soft after reported govt intervention; dollar steadies

The yen weakened after reported Tokyo intervention that followed USD/JPY crossing 160, with the pair rising about 0.4% on Friday after falling more than 2% the prior session. The move came alongside a softer-than-expected Tokyo CPI print and despite a hawkish Bank of Japan tone. The dollar steadied after losing nearly 2% in April, with the dollar index slightly higher as safe-haven flows related to the U.S.-Iran standoff and a firmer Fed policy outlook supported the greenback. Asian FX volumes remained muted by regional holidays. AUD/USD eased about 0.1% while USD/CNH was flat. Market drivers are government intervention, domestic inflation data, geopolitics in the Middle East and a reduced market bet on Fed rate cuts — all keeping FX markets on edge and tilting near-term bias toward a firmer dollar vs. the yen.