The dollar is at its highest point in 24 years against the yen after the United States' Consumer Price Index (CPI) came as a shock.

The dollar is at its highest point in 24 years against the yen after the United States' Consumer Price Index (CPI) came as a shock.

Japanese 10,000 yen and U.S. 100 dollar banknotes are arranged for a photograph in Tokyo, Japan, on Sept. 7, 2017.

The dollar climbed close to a 24-year peak against the yen on Wednesday amid a jump in U.S. yields after hotter-than-expected inflation boosted bets for even more aggressive monetary tightening by the Federal Reserve next week.

The dollar rose as high as 144 965 yen in the Asian session, taking it close to last Wednesday's high of 144 99, a level not seen since August 1998, before last trading little changed at 144.56.

Overnight, the currency pair, which is extremely sensitive to rate differentials, surged 1.26% as 10-year Treasury yields climbed to a three-month high following an unexpected rise in the U.S. consumer price index for August."This has really shattered the illusion … that inflation had peaked and was coming down," Ray Attrill, head of currency strategy at National Australia Bank, said in a podcast. "Hence markets have decided that next week's Fed decision is not between 50 and 75 [basis point increase], it's now between 75 and 100."

Money markets currently price 37% odds for a full percentage-point hike on Sept. 21, versus a 63% probability of another 75 basis point move according to CME Group's FedWatch tool Nomura's economists also said they now believe a 100 basis-point rate hike is the most likely outcome out of next week's meeting

The risk-sensitive Aussie dollar rose 0.25% to $0.6750, although that jump paled in comparison with its precipitous 2.26% slide overnight.

Leading cryptocurrency bitcoin lost another 0.21% to $20,191.00, following a 9.93% decline on Tuesday.

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"This has really shattered the illusion … that inflation had peaked and was coming down," Ray Attrill, head of currency strategy at National Australia Bank, said in a podcast.

Overnight, the currency pair, which is extremely sensitive to rate differentials, surged 1.26% as 10-year Treasury yields climbed to a three-month high following an unexpected rise in the U.S. consumer price index for August.

Subsection 3.1 "Hence markets have decided that next week's Fed decision is not between 50 and 75 [basis point increase], it's now between 75 and 100."

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Money markets currently price 37% odds for a full percentage-point hike on Sept. 21, versus a 63% probability of another 75 basis point move.

"Hence markets have decided that next week's Fed decision is not between 50 and 75 [basis point increase], it's now between 75 and 100."

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"The dollar is screaming overvaluation, but in

The dollar is at its highest point in 24 years against the yen after the United States' Consumer Price Index (CPI) came as a shock. The CPI showed that inflation had risen more than expected in August, leading to concerns that the Fed may need to raise rates more aggressively than previously thought.

Money markets are now pricing in a 37% chance of a full percentage-point rate hike by the Fed next week, up from a 63% probability of another 75 basis point move. Nomura's economists believe that a 100 basis-point rate hike is now the most likely outcome.

The rise in inflation has also led to concerns that the dollar may be overvalued. However, NAB's Attrill said that it would take a cyclical downturn in the dollar to confirm this view.

The risk-sensitive Aussie dollar rose 0.25% to $0.6750, although this was much smaller than its 2.26% decline overnight. Bitcoin also fell 0.21% to $20,191.00 after a 9.93% drop on Tuesday.

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