Forex
BoJ Rate Hike Predicted as Yen Strengthens
The yen has reached a seven-month high, causing Japan's 10-year government bond yield to dip to around 2.89% on Tuesday.
This marks an extension of its retreat from 30-year highs and eases inflationary pressures in the country.
A stronger yen typically lowers the cost of imports, which can contribute to softer inflation.
The currency's rally was driven by the unwinding of carry trades and expectations of capital repatriation, as well as growing US political pressure for Japan to support the yen through tighter monetary policy.