Japanese yen slips to over 3-decade low against greenback

The Japanese yen plunged to its lowest level since 1990 against the greenback following hotter-than-expected US inflation data, prompting worries that the Federal Reserve will not pause aggressive rate hikes to tame inflation.

The US dollar rose to as high as 147.66 yen during the day, as investors rushed to the greenback.

Annual consumer inflation in the US came in at 8.2% in September, higher than the market estimate of 8.1%, according to Labor Department figures released Thursday.

On a monthly basis, CPI in September rose 0.4% from the previous month, twice the market expectation of 0.2%.

While the Bank of Japan pursues an ultra-loose monetary policy to support economic growth, the Fed is expected to increase rates by 75 basis points next month.

The Fed has increased its benchmark interest rate by a total of 300 points since March to tame record inflation that is still hovering around its highest level in more than 40 years.

In the contrary, Japan’s central bank kept its ultra-low interest rate unchanged at minus 0.1% in its September meeting.