NEW YORK, Oct 10 Reuters The U.S. dollar slipped against the yen on Thursday as investors weighed data showing labor market weakness as well as a slight uptick in consumer prices, suggesting that the Federal Reserve will likely continue cutting interest rates.

Labor Department data on Thursday showed that the consumer price index increased 0.2 in September. However, in the 12 months through September the CPI climbed 2.4, which was the smallest yearonyear rise since February 2021.

Economists polled by Reuters had forecast the CPI edging up 0.1 and rising 2.3 yearonyear.

Other data from the Labor Department also showed that the number of Americans seeking unemployment benefits surged last week, driven partly by Hurricane Helene and furloughs at Boeing.

The market39;s been in a bit of a tug of war between caring more about inflation versus caring more about employment, said Brad Bechtel, global head of FX at Jefferies in New York. Clearly, the Fed has shifted its view recently when it decided to focus more on the employment side of the equation, and then cut 50 basis points a few weeks ago and they also quickly turned around and said they may not cut 50 basis points again.

The greenback was down 0.38 at 148.66 yen after rising to as high as 149.58 yen for the first time since Aug. 2 . Bank of Japan Deputy Governor Ryozo Himino39;s latest comments on Thursday supporting more rate hikes if the economy moves in line with bank projections, had helped to keep the dollar…