Yen Surge Amid Dollar Dip: Market Reactions to Inflation Data

The yen surged over 1% against the U.S. dollar, hitting a six-week high due to unexpected Tokyo inflation rates, leading to speculation of a Bank of Japan rate hike. Meanwhile, the dollar index fell amidst fluctuating U.S. stocks and bonds, and the euro saw slight gains.

The yen made a significant leap against the U.S. dollar, gaining more than 1% to reach a six-week peak following unexpected inflation results in Tokyo, fostering expectations for a potential Bank of Japan interest rate hike in December.

This currency movement occurs amid thinned trading due to the U.S. Thanksgiving holiday, with the dollar down 1% to 150.03 yen, and earlier hitting 149.53 yen, marking its lowest since October 21.

The dollar index decreased to a two-week low of 105.61, driven by Donald Trump's election victory, yet recent days saw the U.S. currency decline, while the yen harnessed safe-haven flows.

(With inputs from agencies.)