The yen briefly breached the key level of ¥150 against the dollar as traders positioned for a stronger likelihood of the Bank of Japan raising interest rates in December while the Federal Reserve cuts U.S. borrowing costs.
The Japanese currency surged as much as 1.1% to ¥149.86 to the strongest level since Oct. 21 following Tokyo consumer price data that came in hotter than expected. It was back around ¥150.22 just after midday in Tokyo, amid choppy moves that were likely amplified by month-end flows and low liquidity due to U.S. markets being closed on Thursday for Thanksgiving.
The Japanese data offers further evidence that the economy is developing in line with the BOJ’s forecasts. Gov. Kazuo Ueda has repeatedly said he will continue to raise rates from very low levels if the economy and prices continue in line with the central bank’s view.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.