BOJ Rate Hike Odds Surge as Yen Trades Near 159

The Japanese yen has maintained its range-bound behavior, trading at around 158.9 per dollar on Monday.

This stability is largely attributed to growing expectations of an early Bank of Japan rate hike, which have significantly increased since the BOJ's July meeting.

Market participants now assign a roughly 82% probability to a September rate increase, up from approximately 23% before the BOJ's July gathering. This anticipated move would bring the policy rate to 1.25% from its current level of 0%.

The upcoming speech by Deputy Governor Ryozo Himino on Thursday is expected to provide further insight into the timing and pace of policy normalization.