Yen Hits Seven-Month High as Dollar Slips Under Pressure

The Japanese yen continued its ascent on Wednesday, reaching a seven-month high as the dollar slipped under pressure. The pair traded around 153.65, up from Tuesday's strong level of 152.89.

The yen's gains reflect expectations for faster Bank of Japan tightening and Japanese investors repatriating overseas funds. Pressure from Washington to maintain a stronger yen also contributed to its rise.

The dollar's weakness was compounded by rising oil prices, which approached $100 a barrel as the conflict in the Middle East escalated. Higher energy costs increased inflation risks globally, with markets looking ahead to Friday's U.S. inflation report and next week's Federal Reserve meeting.