Asian Currencies Rise as Yen Strengthens Amid Fed Rate Hike Bets

The Asian currencies gained strength on Monday as the yen rose to its best level in over a month. The U.S. dollar remained under pressure due to rising bets of a September Federal Reserve rate hike and concerns about global interest rates.

The Bank of Japan's decision to raise its benchmark rate by 25 basis points on September 18 has increased expectations, with the yen up 2.7% last week. This puts it on track for its best weekly performance since July.

The USD/JPY pair was trading at 156.14, while the Bank of Japan's top currency diplomat Atsushi Mimura said he remained alert to exchange-rate movements and was in constant contact with U.S. authorities.