• USD/JPY slumps to near 142.00 as the US Dollar corrects after the US PPI report release.
• The US headline and core PPI for August came in softer-than-expected.
• BoJ Tamura sees interest rates rising to at least 1%.

The USD/JPY pair falls sharply to near 142.00 in Thursday’s North American session. The asset declines as the US Dollar (USD) faces selling pressure after the release of the softer-than-expected United States (US) annual Producer Price Index (PPI) data for August.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, corrects to near 101.60.

The PPI report showed that the annual headline produce inflation grew by 1.7%, slower than estimates of 1.8% and the prior release of 2.1%, downwardly revised from 2.2%. The core PPI – which excludes volatile food and energy prices – rose steadily by 2.4%, at a slower pace than expectations of 2.5%. The impact of the US PPI data appears to be insignificant on market speculation for the Federal Reserve (Fed) interest rate cut path for next week’s policy meeting.