Yen Extends Gain Against Dollar Past 2% on Day, After US CPI

The Japanese yen extended gains on the day versus the US currency to more than 2% after the release of US consumer-price inflation data.

(Bloomberg) — The Japanese yen extended gains on the day versus the US currency to more than 2% after the release of US consumer-price inflation data.

Move extended a large gain from earlier that came as traders piled into bets on another hawkish pivot from the Bank of Japan following a report that the central bank will review the side effects of its policy as soon as next week.

Dollar-yen exchange rate fell as much as 2.1% to 129.66.

A key gauge of US inflation posted a moderate increase in December, adding to evidence that some price pressures are easing and offering the Federal Reserve room to slow the pace of interest-rate hikes next month.

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