According to Jinshi Data, stronger-than-expected consumer price data in Tokyo, Japan, pushed the yen above the key psychological level of 150 yen against the dollar. The market expects that the possibility of a narrowing of the gap between US and Japanese yields will increase next month.
As the U.S. market was closed for Thanksgiving, liquidity was low, exacerbating exchange rate fluctuations. Yujiro Goto, head of foreign exchange strategy at Nomura Securities, said that the yen was under increasing pressure to strengthen amid expectations of a rate hike at the Bank of Japan's December meeting. The pressure on the dollar to strengthen eased, and the yen became the target of dollar selling.