The USD/JPY pair retreated below the 151.00 level on Wednesday, pressured by stronger-than-expected inflation data from Japan. Tokyo’s Consumer Price Index (CPI) surged in November, signaling persistent inflationary pressures and raising speculation about potential adjustments to the Bank of Japan’s monetary policy.
The Tokyo CPI rose by 3.7% year-on-year, exceeding market forecasts and marking a significant acceleration from October’s figures. This development has weighed on the dollar-yen exchange rate as traders recalibrate expectations for Japan’s economic trajectory. The yen strengthened modestly as higher inflation could prompt a more hawkish stance from the central bank, while the U.S. dollar remains subdued amid mixed signals on the Federal Reserve’s rate path.
