GBP Crashes to Six-Month Low vs Yen Amid BoJ Rate Hike Bets

The British Pound has hit its lowest level against the Japanese Yen in six months, with the GBP/JPY cross falling below the 209.00 mark.

This decline comes amid a broad-based rally in the Japanese Yen, driven by aggressive repricing of interest rate hikes by the Bank of Japan (BoJ).

Traders now fully expect a 25 basis point rate hike at the next BoJ meeting on September 17-18, with some analysts predicting a larger jumbo hike to anchor rising inflation expectations and cap long-end yields.

The JPY has also been boosted by renewed speculation of another currency market intervention by Japanese authorities.