Yen weakens past key 145 per dollar level; yuan falls after China PMI data

The yen weakened to its lowest level in over seven months, reaching 145 per dollar, raising speculation of possible intervention from Japanese authorities. The faltering economic recovery in China also put pressure on the yuan, which fell to its lowest point since November. Data showed a rise of core consumer prices in Tokyo and a contraction in Chinese manufacturing activity. The US dollar, on the other hand, gained strength in the second quarter, supported by expectations of further interest rate hikes by the US Federal Reserve. The euro and sterling also showed gains for the month.