Yen's Seven-Month High Weighs on Dollar Ahead of US CPI Data

The Japanese yen has reached a seven-month high against the U.S. dollar on Tuesday, driven by growing bets of a Bank of Japan interest-rate hike and a range of other factors.

According to Reuters, the yen strengthened to as much as 152.89 per dollar in Asia, surpassing levels reached during Japan's July intervention and hitting its strongest since February.

Khoon Goh, head of Asia research at ANZ, noted that when the yen started moving stronger, it triggered a lot of stop losses, especially when it broke key levels. 'The thing about this kind of momentum moves is it can be self-reinforcing,' he said.

The dollar index, which measures the greenback against a basket of currencies, was subdued at 98.84 amid yen strength.