Tokyo Inflation Surge Lifts Japanese Yen Above USD/JPY 157.90
The Japanese Yen (JPY) gained strength after Tokyo's Consumer Price Index (CPI) rose to 2.7% year-over-year in September, exceeding expectations and putting upward pressure on the currency.
This unexpected inflation data boosted hopes for a more hawkish monetary policy from the Bank of Japan, leading traders to price in under a 28% chance of an October Federal Reserve rate hike and weaken the US Dollar (USD).
The USD/JPY pair declined after two days of gains, trading around 157.90 during Asian hours on Friday as the Japanese Yen continued its upward momentum.