US PPI Data Fuels USD Rally Against JPY

The US Dollar has gained strength against its Japanese counterpart, USD/JPY, rising to around 154.15 on Thursday due to a rebound in the US currency.

This comes after data showed accelerating producer price pressures and a resilient labor market in the United States.

According to the US Producer Price Index (PPI), prices rose 5.4% year-over-year in August, exceeding expectations of 5.3%. The core PPI also increased 4.6%, matching forecasts and up from a revised 4.3% rise in July.

The data has strengthened expectations of a Federal Reserve interest-rate hike in September, with markets now pricing in nearly a 70% chance of a rate increase.