Yen Gains as Soft US CPI Dents Fed Hike Expectations
The Japanese Yen strengthened more than 0.31% against the US Dollar after a softer-than-expected US inflation report prompted traders to scale back hawkish Fed bets. USD/JPY traded at 161.93.
The Japanese Yen rose sharply against the US Dollar on Wednesday, driven by a weaker-than-anticipated US Consumer Price Index (CPI) report. The data led traders to reduce expectations for further Federal Reserve interest rate hikes, weighing on the greenback.
USD/JPY fell to 161.93 after hitting a daily high earlier in the session, marking a decline of over 0.31% for the pair. The move reflects a shift in sentiment as inflation figures came in below consensus, easing pressure on the Fed to maintain an aggressive tightening stance.
Source: FXStreet Forex News