USD/JPY Nears 160 as US Inflation Fuels Dollar and Sparks Japanese Intervention Warnings

USD/JPY is trading near the key 160.00 psychological level, remaining well supported above 159.50 as hotter-than-expected US inflation data drives the dollar higher. US consumer prices climbed 0.4% month-over-month in October, pushing the pair to an overnight high of 159.95. The yen's depreciation comes despite Japanese domestic wholesale inflation accelerating to 7.1% year-over-year in October, which bolstered expectations for a Bank of Japan December rate hike. With Tokyo already spending over ¥27.1 trillion this year defending the yen, top currency diplomat Atsushi Mimura issued renewed verbal warnings against rapid exchange rate volatility.