Yen gave up ground on Friday after advancing yesterday against the dollar, with the losses mitigated after inflation rose more than expected in Japan.
USD/JPY rose to 107.84 from the opening of 107.74, with a session-low at 106.65, and a high at 107.99.
Japan’s consumer prices rose 1.4% in January, up from 1.0% in the previous reading and beating expectations of 1.3%, while core prices – excluding fresh food- rose 0.9%, also above forecasts of 0.8%.
Yen has suffered throughout the week due to dollar’s strength, however managing to play the rule of a safe haven yesterday amid concerns on US Federal Reserve rate hikes.
Japanese finance minister Taro Aso said it’s important for Bank of Japan to carry on its current monetary policy, while expressing the need to increase the sales tax from 8% to 10%.