Yen wobbles near 40-year low as dollar pauses for breath

The yen hovered near a 40-year low against the dollar as US inflation data met expectations, prompting traders to scale back bets on Federal Reserve rate hikes. Mixed signals from Fed officials on the policy path ahead also weighed on the currency. Despite a slight pullback, the dollar remained strong and was poised for its first back-to-back weekly gain since February.