In European trading on Friday (Oct 21), / was trading at 149.13, down 0.01%.
Japan’s dovish policies were put to the test on Friday after data showed the core rose 3.0% in September from a year earlier, the fastest pace in eight years and beating the 2% target for the sixth straight month.
Japan’s core CPI accelerated to a fresh eight-year high of 3.0% in September, exceeding the BOJ‘s 2% target for the sixth straight month, as the yen‘s plunge to a 32-year low continued to push up import costs.
The inflation data highlight the dilemma facing the boj as it tries to prop up a flagging economy by keeping it ultra-low, which in turn exacerbates an unwelcome fall in the yen and pushes up the cost of imports.
The rise in the national core CPI, which excludes volatile fresh food but includes fuel prices, was in line with median market expectations and extended August’s 2.8 per cent gain.
It was the fastest pace since September 2014, Friday’s data showed.
The dollar broke Thursday’s high of 150.29 against the yen on Friday, extending a 12-day winning streak.
Instead of reacting to any rebound in the risk-taking impulse, the asset has effectively taken advantage of periods of negative market sentiment.
