The U.S. dollar rose to its highest level against the Japanese yen since August 2008 on Wednesday, but analysts don’t expect the rally to last.
The dollar-yen reached 110.08 in Asian trading and has risen 8 percent since early August, driven by expectations for a Federal Reserve rate hike in the first half of 2015 and weak readings on the Japanese economy.
Poor household spending and industrial production figures released this week highlight the continued drag that a three-percentage-point consumption tax hike in April is having on the economy. Household spending fell 4.7 percent on year in August, while industrial production declined 1.5 percent.
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