USD/JPY Falls as Yen Strength Outweighs US Dollar's Post-Inflation Rally
The Japanese Yen has rallied against the US Dollar as the greenback's post-inflation momentum began to fade. The USD/JPY pair fell 0.54% on Friday and traded around 153.60 at the time of writing.
US inflation data for August was released by the Bureau of Labor Statistics (BLS) on Friday, showing a Consumer Price Index (CPI) rise of 3.4% year-over-year, unchanged from the previous month and in line with market expectations. On a monthly basis, prices increased 0.4%, following a rise of just 0.1% previously.
Core CPI, which excludes volatile food and energy prices, rose 0.3% on a monthly basis, exceeding the 0.2% forecast. However, on an annual basis, core inflation eased to 2.4% from 2.5% in July.
The US Dollar initially strengthened following the release, supported by the stronger-than-expected monthly increase in core inflation. However, this reaction quickly lost momentum against the Japanese Yen, which remains supported by expectations surrounding the Bank of Japan's (BoJ) upcoming monetary policy decision.