According to FXStreet, on November 29, the Japanese Yen (JPY) just hit its highest level in more than a month against the US Dollar (USD) after data showed consumer prices in Tokyo increased rapidly again.
New data showed that the consumer price index (CPI) in Tokyo rose 2.6 percent year-on-year in May, up from 1.8 percent in the previous month. The core CPI, which excludes fresh food, also rose 2.2 percent, while the index excluding energy and fresh food also rose by a similar amount.
In addition, Japan's unemployment rate edged up to 2.5% in October, while retail sales rose 1.6% year-on-year. Industrial output also rose sharply by 3% in October, though below expectations of 3.9%.
The rising inflation data further increases the likelihood that the BoJ will raise interest rates again at its meeting in December.
In addition, US government bond yields are falling due to news of Scott Bessent's nomination as US Treasury Secretary and expectations that the US Federal Reserve (Fed) will cut interest rates in December.
In addition, concerns about US President-elect Donald Trump's tariff policies and the protracted Russia-Ukraine war have prompted investors to seek the Japanese Yen as a safe haven.
At the same time, US bond yields fell and the dollar weakened due to concerns about the US budget deficit.
These factors weakened the USD, pushing the USD/JPY exchange rate below the 150 mark.
According to Lao Dong, updated at 1:00 p.m. on November 29, the USD/JPY exchange rate is currently fluctuating around 150,196 USD/JPY, meaning 1 USD can be exchanged for about 150 JPY, down 0.87% compared to yesterday's session.
