The yen once appreciated to 149 yen against the US dollar.

On the Tokyo forex market on November 29th, the yen rose to 149 yen per US dollar at one point. This marks the yen's appreciation against the dollar for nearly a month since late October. The year-on-year increase in the November Tokyo Consumer Price Index (CPI) announced on the morning of November 29th exceeded market expectations. Expectations for a Bank of Japan rate hike strengthened in the market, narrowing the interest rate differential between Japan and the US. Investors have been buying yen and selling dollars.

The Japanese yen exchange rate fell to around 156 yen in mid-November. As the market generally believes that the victorious Trump will introduce policies that exacerbate inflation in the United States, it is realized that the pace of interest rate cuts in the United States will slow down. Therefore, as part of the "Trump trade," many sold the yen and bought the dollar. After this round of trading, the yen rebounded.

The United States has entered holiday mode starting from Thanksgiving on November 28th. Trading liquidity has decreased, and price fluctuations have become more intense. Daisaku Ueno, Chief Forex Strategist at Mitsubishi UFJ Morgan Stanley Securities, pointed out: "The pullback of the Trump trade coinciding with the adjustments in positions around Thanksgiving hastened the strengthening of the yen and weakening of the dollar."

Bank of Japan Governor Haruhiko Kuroda stated on November 21st that they will "obtain more data" before the next December meeting. The market generally believes that the CPI data from the Tokyo metropolitan area will drive further interest rate hikes at the December meeting.