There is this rare but sharp move in the Japanese inflation rate impacting fall in the Japanese Yen/US Dollars exchange rate.

Global analyst have been looking into what might have caused this sharp move in the exchange rate moving Japanese Yen to all time low in weeks against U.S Dollar which currently exchange at 142.16/USD.

The sharp move in Japanese Yen/US Dollar exchange rate is said to have been influenced by the remark recently made by the Bank of Japan (BOJ) Governor Kazoo Ueda at an international conference in Tokyo attended by other countries' central-bankers.

Ueda stated inflation in Japan has picked up again, driven primarily by higher prices of food, most notably rice.

 He insisted the central bank may continue to raise the country's interest rates if inflation remains stable, iteratively warning the economists about the impact of food prices on core inflation.

TheRoundTable could also discover that the weaker USD, which is caused by the rising concerns over U.S. debt and unpredictable trade policies against foreign allies seems to have increased demand for the Japanese Yen as close alternative.

Latest data show that Japan’s core inflation unexpectedly rose to 3.5% — the highest level in two years — reinforcing the case for further rate hikes. However, what’s particularly striking is that despite Ueda’s hawkish tone, the yen is weakening.