Yen Gains Strength as BOJ Rate Hike Bets Build

The Japanese yen is gaining strength against the US dollar, and is on track for its strongest week in over a month. The currency has been boosted by bets that the Bank of Japan could be more hawkish than expected when it meets to set interest rates next week.

The yen reached 155.25 per dollar in morning trade, just shy of its recent high of 155.20 after the July intervention. However, it later eased and was last trading at 155.71.

Analysts say the sudden jump in the yen reflects growing expectations that the Bank of Japan will continue to normalize policy into 2027.