Pound Weakens Against Yen Amid Hawkish BoJ Prospects

The British Pound has weakened against the Japanese Yen on Wednesday, trading 0.22% lower at around 216.85 during the European session.

This decline comes as financial markets price in an interest rate hike by the Bank of Japan (BoJ) in its policy meeting next month.

Strategists at Scotiabank note that Japan's July inflation figures maintained the recent upward trend, with the country's CPI rising to 1.9% in the year, in line with expectations.

The latest data adds marginally to conviction that the BoJ will tighten next month, with 20bps or hikes reflected in swaps.