USD/JPY Plunges Below 154.000 as BOJ Rate Hike Bets Strengthen Yen
USD/JPY fell below 154.000 as expectations for a Bank of Japan (BOJ) rate hike continued to strengthen the yen.
The BOJ's interest rate hike prospects rose after Japan's Q2 GDP growth was revised higher to an annualised 1.4%, indicating stronger business investment and supporting expectations for a more aggressive monetary policy.
Higher Japanese yields are putting pressure on yen-funded carry trades, as the cost of holding short yen positions becomes less attractive.