The yen weakened past ¥150 per dollar Wednesday for the first time since November, prompting the strongest pushback from Japanese officials in months, as hotter-than-expected U.S. inflation doused bets on an early U.S. interest rate cut.
The Japanese currency was at around ¥150.73 against the dollar early Wednesday in Tokyo after a 1% plunge overnight that was part of a broader slide in Group of 10 (G10) currencies against the dollar. The continued strength in U.S. prices buoyed speculation that the Federal Reserve will need to keep interest rates at two-decade highs for several more months.
The currency move triggered a flurry of verbal warnings from Tokyo’s most senior currency officials.