Business · Markets · 1 hr ago
Yen falls to 158 per dollar as US rate-rise bets grow
The yen weakened against the dollar in early trading in Tokyo on Nov.
11, reaching 158.69 to 158.70 yen per dollar.
The move followed US inflation figures showing consumer prices rose 0.4% in October, above market expectations, while core prices also exceeded forecasts.
Traders raised the odds of a December Fed rate increase to 90%, making dollar investments more attractive as US interest rates were expected to rise.
The shift put pressure on the yen, although falling oil prices and easing concern about a widening Japanese trade deficit offered some support.
The yen gained against the euro, trading at 177.25 to 177.27 yen per euro, as the euro also weakened against the dollar.
The exchange rates show how expectations for US monetary policy can affect currencies, but the update does not say what will happen next.
The yen weakened to 158.69–70 per dollar in early Tokyo trading on Nov. 11.
Bets that the US Federal Reserve will raise interest rates in December strengthened after US inflation figures exceeded forecasts.
The yen was 68 sen weaker against the dollar than at 5 p.m. the previous day.
The yen rose against the euro, trading at 177.25–27 yen per euro.
Lower oil prices and reduced concern about Japan’s trade deficit supported the yen.
- Who
- The yen weakened against the US dollar.
- What
- It traded at 158.69–70 yen per dollar in early Tokyo trading.
- When
- At 8:30 a.m. on Nov. 11.
- Where
- The Tokyo foreign exchange market.
- Why
- Stronger-than-expected US inflation increased expectations of a December Federal Reserve rate rise, prompting yen selling and dollar buying.
This story does not have two clearly opposing sides.
Federal Reserve governor Christopher Waller said a core CPI monthly increase of 0.3% or more would require stronger policy action and that a 0.5% rate rise should be considered.
US consumer prices rose 0.4% from the previous month, above the 0.3% market forecast; core prices rose 0.3%, above the 0.2% forecast.
US long-term interest rates rose as expectations of a December Federal Reserve rate increase strengthened.
The yen traded at 158.69–70 per dollar and 177.25–27 per euro in Tokyo.
- Dollar exchange rate
- 158.69–70 yen at 8:30 a.m. on Nov. 11
- Daily change
- Yen weakened 68 sen against the dollar from the previous day’s 5 p.m. level
- US CPI
- Rose 0.4% month on month in October, above the 0.3% forecast
- Core US CPI
- Rose 0.3% month on month, above the 0.2% forecast
- December rate-rise probability
- 90% in FedWatch early on Nov. 11, up from the mid-80% range the previous day
- Euro exchange rate
- 177.25–27 yen at 8:30 a.m. on Nov. 11
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What people are saying
further powerful policy action will be necessary