BoJ Rate Hike Bets Spark Yen Rally

The Japanese yen strengthened against other major currencies in early European trading on Wednesday, as traders speculated that the Bank of Japan (BoJ) may consider a 50bps interest rate hike at its next meeting.

Some market participants anticipate that the BoJ will raise rates due to Prime Minister Sanae Takaichi's administration taking a stronger stance against excessive yen weakening. The administration has been vocal about addressing the issue, which has contributed to the speculation surrounding a potential rate increase.