BoJ Rate Hike Speculation Boosts Japanese Yen

The Japanese yen has strengthened against other major currencies in the European session on Monday, as traders anticipate that the Bank of Japan (BoJ) may raise its interest rates soon. Minutes from the BoJ's July 30 to 31 meeting revealed a broad agreement among policymakers on rising inflation risks.

This has fueled speculation that the central bank could increase its benchmark rate for a second consecutive month when it meets in October. The potential rate hike has contributed to the yen's gain against other currencies, including a rise of 0.2% against the US dollar and 0.3% against the euro.

The BoJ is expected to make a decision on interest rates at its next policy meeting in October. If it does raise rates, it would be the second straight month of increases.