By Chibuike Oguh

NEW YORK (Reuters) -The U.S. dollar edged lower against the yen on Thursday after data showed a higher-than-expected rise in U.S. inflation in September even though prices were on a downward trend, allowing the Federal Reserve to keep cutting interest rates.

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

The greenback was down 0.54% at 148.50 yen after rising to as high as 149.58 yen for the first time since Aug. 2.

The , which measures the currency against six key rivals including the yen and euro, was down 0.09% to 102.780 after hitting its highest since August 16.