BOJ Rate Hike Expected to Boost Yen Amid Inflation Fears

The Japanese yen has reached its strongest level in seven months, trading around 153.4 per dollar on Thursday.

This comes ahead of an expected Bank of Japan rate hike next week, with the central bank widely expected to lift its policy rate to 1.25%, its highest level in roughly 31 years.

The BOJ aims to address the risk of inflation exceeding expectations amid rising crude oil prices and continued yen weakness.

The Takaichi administration has taken a more hawkish stance, recognizing the need to curb excessive yen depreciation.