Forex
USD/JPY Soars as Markets Anticipate BoJ Rate Hike
The USD/JPY currency pair rose to 154.87 on Tuesday, marking a second consecutive day of Japanese yen weakening against the US dollar.
This trend is attributed to the strengthening of the US dollar ahead of an expected Federal Reserve rate increase this week and higher oil prices, which increase Japan's import bill and put additional pressure on its economy.
The Bank of Japan is set to raise its policy rate to 1.25% on Friday, its highest level since April 1995, amid growing inflation risks. Markets will also be watching for signals from the central bank about potential future rate increases before the end of the year.