Yen weakens past 158 per dollar as inflation data keeps BoJ hike bets alive

The Japanese yen weakened past 158 per dollar on Tuesday as investors returned from an extended holiday break, while the US dollar index hovered around 102.2 ahead of key US inflation data. Japan?s producer price inflation eased to 6.8% year-on-year in September, its slowest pace since May, but elevated import costs and persistent fuel and chemical pressures continued to fuel expectations of a near-term Bank of Japan rate hike. Investors now await US CPI on Wednesday and PPI on Thursday for fresh clues on the Federal Reserve?s policy outlook and further direction for the dollar-yen pair.

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