PHOTO
A picture illustration shows U.S. 100 dollar banks and Japanese 10,000 yen notes taken in Tokyo August 2, 2011. The dollar spiked higher against the yen on August 4, 2011 as Japanese authorities intervened to stem the yen's strength. Picture taken August 2, 2011. REUTERS/Yuriko Nakao (JAPAN - Tags: EMPLOYMENT BUSINESS)
The U.S. dollar extended losses against the yen on Friday after data showed inflation in the world's largest economy cooled down last month, cementing expectations that the Federal Reserve will start cutting interest rates this year.
The U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, was unchanged last month, and followed an unrevised 0.3% gain in April, data showed. In the 12 months through May, the PCE price index increased 2.6% after advancing 2.7% in April.
Post-data, the dollar slipped 0.1% versus the Japanese currency to 160.55 yen.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Sharon Singleton)
