Yen gains after hitting 38-year low

HONG KONG, June 27 (AFP): The yen edged back slightly Thursday after hitting a 38-year low against the dollar, putting investors on alert for a possible intervention by Japanese authorities, while investors awaited US inflation data that could spark another round of volatility.

The Japanese unit's latest retreat came as uncertainty surrounded the Federal Reserve's timetable for cutting interest rates, and the Bank of Japan's caution in tightening monetary policy.

Traders were also selling equities across Asia as tech firms came under pressure amid concerns that a long-running rally in the sector may have been overdone and profit-takers stepped in.

Focus has turned to Tokyo, where vice finance minister Masato Kanda said this week that authorities were keeping a close eye on movements in forex markets and were ready to step in with yen support 24 hours a day. Their determination was put to the test after the yen fell to 160.87 per dollar late Wednesday-its weakest since 1986 -- as US Treasury yields spiked.