UPDATE1: Dollar tops 150 yen for 1st time since early August

The U.S. dollar briefly topped 150 yen for the first time since early August on Thursday, following the European Central Bank’s rate cut and the release of stronger-than-expected U.S. retail sales data.

The dollar has been bought against the yen recently on prospects that the interest rate gap between the United States and Japan will remain wide following the release of firm U.S. economic data.

The yen also faced selling pressure after Prime Minister Shigeru Ishiba, shortly after taking office on Oct. 1, expressed hope that the Bank of Japan refrain from rushing interest rate hikes, despite previously appearing supportive of them.

At 8:40 a.m. in New York, the dollar fetched 149.98-150.08 yen, compared with 149.76-78 yen in Tokyo at 5 p.m. Thursday.

Retail sales in the United States increased by 0.4 percent from a month earlier in September, official data showed Thursday, while the ECB cut interest rates, underscoring that the central bank believes inflation in the region is now under control.

Last month, the U.S. Federal Reserve cut its benchmark interest rate for the first time in four and a half years amid softening inflation, embarking on an easing cycle with a larger-than-usual change of 0.5 percentage point.

But recent solid U.S. employment data have curbed speculation next interest rate cuts by the U.S. central bank would be sizable, dealers said.

==Kyodo

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