Yen crosses were on the retreat Wednesday as the carry-trade favorite garnered supported from a market-wide swell in risk aversion and growing speculation that the Bank of Japan may have to lift lending rates in order to quell inflation pressures that have reached a decade high.
The policy authority, like other major central banks, has had to balance fading growth trends with oppressive inflation. The market has almost fully priced in a quarter-point rate hike from the Japanese bank over the coming 12 months.
