Yen Hits Four-Day High as US Dollar Weakness Persists Ahead of Inflation Data

The Japanese yen has risen against a basket of major and minor currencies in Asian trading, extending its gains against the US dollar for a fourth consecutive day. The yen is approaching a retest of its seven-month high as it benefits from continued weakness in the US currency ahead of key inflation data in the United States.

The US dollar fell 0.15% against the yen to ¥153.29, down from an opening level of ¥153.51 and a session high of ¥153.74. This comes after the yen reached a seven-month high of ¥152.89 the previous day due to strong bullish catalysts.

Market expectations suggest that the Bank of Japan will continue normalizing monetary policy this year, with the likelihood of another interest rate hike after the increase widely expected in September. Recent hawkish comments from some Bank of Japan officials have strengthened these expectations.