The U.S. dollar briefly reached a seven-and-a-half-month high against the yen in Tokyo. However, concerns about possible intervention by Japanese authorities prevented investors from pursuing further gains. The dollar had risen due to strong U.S. economic data, which fueled speculation about extended interest rate hikes by the Federal Reserve. Japanese Finance Minister Shunichi Suzuki warned of a potential response to excessive volatility in the yen. The dollar also weakened as domestic exporters bought the yen for settlement purposes. Some dealers believed that intervention was not necessary at the moment, as falling resource costs mitigated the impact of a weak yen. At the end of the day, the dollar was trading at 144.84-86 yen. In other news, Tokyo stocks experienced a decline as investors awaited U.S. inflation data. The Nikkei Stock Average ended down, led by declines in pharmaceutical, land transportation, and wholesale trade shares. Chip-related shares faced downward pressure, while department store operator Takashimaya saw gains after revising its profit forecast.
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