GBP/JPY Plunges Below 209.00 as BOJ Rate Hike Expectations Surge

The British pound has hit its lowest level against the Japanese yen in six months, slipping below the key psychological level of 209.00 due to a surge in demand for the yen.

This move was driven by market expectations that the Bank of Japan will raise interest rates by 25 basis points at its upcoming meeting on September 17-18.

The hawkish repricing of BOJ policy has intensified pressure on the cross, with some analysts citing concerns over Japan's fiscal outlook as a potential constraint on further yen gains.

Despite this, the yen continues to be supported by speculation about fresh Japanese currency-market intervention and technical selling after breaking below the 210.00 level.