The yen temporarily reached the ¥160 level in the New York market on the 12th, weakening to its lowest level in about 2 and a half months. The strengthening of expectations for US rate hikes is believed to have prompted broader dollar buying.
In the New York foreign-exchange market on the 12th, the yen temporarily reached the ¥160 level per dollar, falling to its weakest level in about 2 and a half months. The strengthening of expectations for US rate hikes was cited as a background factor.
US October CPI rose 0.4% month on month, while core CPI rose 0.3%, above market expectations and strengthening expectations surrounding the Federal Reserve's pace of rate hikes. In a speech, Federal Reserve Governor Waller was reported to have said that if core CPI is at least 0.3%, the Fed should consider a 0.5 percentage-point rate hike at its next meeting.
As of 10:00 a.m. on the 13th, the dollar was trading in the ¥159.90 range in the Tokyo market. The Japan-US interest-rate differential is cited as a factor behind yen weakness, while concerns about intervention by the government and the Bank of Japan are also increasing.