BOJ leaves rates unchanged, signals future hikes
Dollaryen hits fresh 34year high
Markets on lookout for Japan intervention
U.S. PCE report comes in line with expectations
September Fed rate cut odds increase

NEW YORKLONDON, April 26 Reuters The dollar soared to a fresh 34year high against the yen on Friday, bolstered in part by U.S. inflation data that showed no signs of easing, coming in line with expectations and affirming expectations the Federal Reserve will likely delay cutting interest rates to later this year.

The yen39;s 34year trough vs the dollar came after the Bank of Japan kept interest rates steady although it flagged future rate hikes. With the yen at multidecade lows, market participants are on alert for possible intervention from Japan to prop up its currency.

The dollar hit 156.95 yen after the U.S. data, the highest since June 1990, and was last up 0.8 at 156.805. The greenback briefly dropped as low as 154.97 earlier in the session, triggering speculation that the BOJ, which acts on the behalf of the Ministry of Finance, may have checked currency rates, supposedly a sign that the central bank is preparing to intervene.

It was not immediately clear what caused the move.

In the United States, the focus was on inflation.

The personal consumption expenditures PCE price index rose 0.3 in March, compared to a forecast of a 0.3 increase, according to the data. In the 12 months through March, PCE inflation advanced 2.7 against expectations of 2.6….