BoJ Hawkishness Boosts USD/JPY Amid October Hike Bets

USD/JPY has been trading at 158.33, up 0.6% from Wednesday's close of 157.39, after the Bank of Japan released its Summary of Opinions from the Sept. 17 to 18 meeting.

The yen weakened past 158 per dollar in Tokyo trading as investors cut bets on an October hike following a hawkish document with most opinions favoring further increases.

The U.S. 2-year Treasury yields 4.879%, 363 basis points above the BoJ's 1.25% policy rate, creating a powerful carry incentive pushing USD/JPY higher.

However, Japan intervened at 161.96 in July 2024, and markets treat 160 as the line where action becomes likely, capping the pair on the upside.