Japanese Yen appreciates as Tokyo CPI inflation rises in December

• The Japanese Yen appreciated following the release of Tokyo CPI inflation data, which showed a rise in December.
• The Tokyo Consumer Price Index increased to 3.0% YoY in December, up from 2.6% in November.
• The US Dollar edges higher amid rising odds of fewer rate cuts by the Federal Reserve.

The Japanese Yen (JPY) gains ground against the US Dollar (USD) on Friday. The USD/JPY pair pulls back from its recent gains as the Japanese Yen (JPY) strengthens following the release of Tokyo Consumer Price Index (CPI) inflation data. The data is expected to keep the Bank of Japan (BoJ) on track for an interest rate hike in January.

The headline Tokyo CPI inflation rose to 3.0% YoY in December, up from 2.6% in November. Meanwhile, the Tokyo CPI excluding Fresh Food and Energy increased to 2.4% YoY in December, compared to 2.2% the previous month. The Tokyo CPI excluding Fresh Food also climbed 2.4% YoY in December, slightly below the expected 2.5% but higher than the 2.2% recorded in November.