Yen hits one-week low after inflation data

Yen fell to the lowest this week against the dollar after inflation data from Japan showed another drop in prices, keeping the pressure on Bank of Japan to carry on its stimulus plans. 

USD/JPY rose to 107.62 from the opening of 107.35, with an intraday low at 107.35, and a high at 107.73. 

Japan's consumer prices rose 1.1% y/y in March as expected, down from 1.5% in February, while core prices, excluding fresh food, rose 0.9% as expected, down from 1%. 

The data shows the struggle facing Bank of Japan to achieve its 2% inflation target after five years of ultra easy monetary policies. 

Analysts expect core consumer prices to reach their peaks later this year, before pressure on food and energy prices subsidizes, putting up even more obstacles in BoJ's path to normalize policies.