Yen Retreats After Comments By Fed Chair

Yen retreats after comments by Fed chair

A strongly-worded speech by the head of the US Federal Reserve has caused the yen to retreat from a 5-month high against the dollar.

Jerome Powell insisted the central bank won't bend to pressure from Washington, easing speculation about an interest rate cut. His comments reduced demand for the Japanese currency.

In Tokyo, the safe-haven currency traded at the 107-yen level.

Investors saw further reason to sell the yen after the Bank of New Zealand decided to keep its key interest rate unchanged at 1.5 percent.

On Tuesday, the yen was trading in the 106-yen range, it's strongest level in more than five months. Demand was partly underpinned by tensions between the US and Iran.

Investors are now focusing on trade talks between the US and China this weekend, and US jobs data due out on Friday next week.