BOJ Rate Hike Looms as Yen Edges Closer to Key Support Level

The Japanese yen has been struggling to maintain its value, but recent developments suggest it may be on the verge of a turnaround. Prime Minister Sanae Takaichi's government is reportedly supportive of a near-term rate hike by the Bank of Japan, which could provide a much-needed boost to the currency.

The next interest rate move is likely to occur either in September or October, according to ANZ's Head of FX Research Mahjabeen Zaman. This comes as the yen has edged closer to the key 160-per-dollar level, sparking concerns about its strength.

A rate hike by the Bank of Japan could help support the yen, but it remains to be seen whether this will be enough to stem the currency's decline. The recent increase in Japanese long yields may also have a positive impact on the yen, as investors become more optimistic about the country's economic prospects.