On Tuesday, the Canadian dollar hit a three-week high against the Japanese yen after the Bank of Japan announced the end of an eight-year negative interest rate policy ahead of Canada's CPI report.。

The Bank of Japan raised short-term interest rates from -0 at its March meeting..1% up to 0% to 0.1%, in line with market expectations。

It was the first rate hike by the Bank of Japan since 2007, as inflation in Japan exceeded the central bank's 2 percent target and the country's largest company agreed to raise 5 percent..28% of wages - the biggest increase in more than three decades。

The Bank of Japan stopped controlling the yield curve on 10-year government bonds and stopped buying ETFs and Japanese real estate investment trusts.。

Market participants will now be watching closely to see if the Bank of Japan will tighten policy further in the future, as this could affect the yen's role as a funding currency for carry trades.。

Meanwhile, on the macro data front, Canadian dollar traders are now shifting their focus to Canada's February CPI inflation data for more clues about the Bank of Canada's future interest rate moves.。

According to market consensus, Canada's annual core consumer inflation rate is likely to increase from 2 in January..9% rose to 3 in February.1% - the lowest level since June 2023。

Earlier this month, the Bank of Canada left its overnight interest rate target unchanged at 5% and pledged to continue regulating its balance sheet, with policymakers still focused on risks to the inflation outlook.。

The Canadian dollar was up 0 against the Japanese yen as of 10: 53 GMT on Tuesday.63% at 110.895。