US CPI exceeded market expectations, causing inflation concerns to resurface. Against this backdrop, the yen temporarily weakened to around ¥159 per dollar, while expectations for the Fed's next rate hike are strengthening.
In the foreign-exchange market on the 11th, the yen temporarily weakened to around ¥159 per dollar, reaching its weakest level in about 1.5 months. The move was driven by the US consumer price index exceeding market expectations, causing inflation concerns to resurface.
Against this backdrop, views spread in the market that expectations for the Fed's next rate hike would strengthen, affecting interest-rate outlooks as well.
The impact going forward, including foreign-exchange market volatility and market participants' interest-rate outlooks, will be closely watched. The article focuses on movements in the yen.