BoJ Rate Hike Bets Boost Japanese Yen Amid Weaker USD

The Japanese Yen has recovered from its two-week low on Friday due to bets of aggressive rate hikes by the Bank of Japan (BoJ) and a softer US Dollar.

Reports of more BoJ interest rate increases have lifted the JPY, weighing on the USD/JPY pair. However, geopolitical uncertainties are limiting USD losses, while the US-Japan interest rate gap might cap the JPY's gains.

The USD/JPY pair has been stuck in modest intraday losses throughout the European session, but remains close to its two-week high set on Thursday.