Yen Hits Seven-Month High Amid BoJ Rate Hike Expectations

The US dollar made small moves on Wednesday as investors focused on the Japanese yen's massive rally.

The yen has been boosted by Bank of Japan (BoJ) policy tightening expectations and speculation of widespread intervention, with markets pricing in a near-certainty of a 25 basis point rate hike by the BoJ on September 18.

Financial markets are also expecting Governor Kazuo Ueda to signal additional normalization before year-end, which could lead to further gains for the yen.

The yen has surged by 4% in September alone and hit a seven-month high against the dollar on Tuesday, with the pair last trading at 153.63.