Yen hits 2-month low near 160 per dollar in London on US rate hike bets

The yen weakened to around 159.90 per dollar in London trading on November 11, its lowest level in about two months, driven by dollar buying on expectations of further US interest rate hikes. The dollar strengthened 1.20 yen from the previous session to 159.80-90 yen as of 4pm London time. Rising US inflation data and hawkish Federal Reserve comments fueled expectations for continued rate increases, boosting the dollar against the yen and euro. The euro fell to $1.1082, its weakest in 1.5 years, while the pound also declined. Concerns over Japan's trade deficit from high oil prices and expectations of slower Bank of Japan rate hikes added pressure, with markets wary of possible intervention near the 160 yen level.