BOJ in Spotlight as Yen Intervention Fuels Rate Hike Expectations

The Bank of Japan (BOJ) is under increasing pressure to tighten its monetary policy after Japan's coordinated yen-buying intervention with the U.S. and South Korea heightened expectations of faster rate hikes.

Markets now price a 76% chance of a BOJ rate hike in September, up sharply from 24%, according to Tokyo Tanshi data.

The coordinated yen-buying operation in late July and early August pushed the Japanese currency about 5% higher, but the yen has struggled to sustain those gains.