The yen fell against the dollar and the euro on Tuesday as Japanese investors took advantage of higher yields abroad, ignoring a host of positive economic data, including Japan's first rise in consumer prices in two years. Japan's nationwide core consumer price index rose 0.1 percent in November from the same month a year earlier, underscoring the view that more than seven years of deflation is coming to an end. Although a rise in consumer prices could pave the way for the Bank of Japan to end its ultra-easy policy of flooding the banking system with excess cash, most traders expect the BOJ to keep interest rates around zero for many more months, even if it slashes the flow of funds to the money market. "Capital outflows from Japan stemming from interest rate gaps will continue," said Seiya Nakajima, chief economist at Itochu Corp. By 0530 GMT, the dollar was at 117.10 yen after rising as high as 117.19 yen from around 116.45 in late Asian trade on Monday. The euro also gained to around 138.70 yen from around 138.00 yen. The European currency was little changed against the dollar at $1.1850 . Financial markets in Europe and the United States were closed on Monday. The London market will be closed again on Tuesday but New York will resume trade. Traders said thin volume due to the Christmas holidays exaggerated the yen's fall.