Yen Hits Seven-Month High as Oil Prices Soar Above $100

The Japanese yen has surged to seven-month highs on Wednesday, pushing the dollar back on its heels. This move has been fueled by expectations of faster Bank of Japan tightening and a strengthening economy.

Oil prices have also broken above $100 per barrel for the first time since late July, casting a shadow over global markets. The rising oil prices are expected to keep inflation in focus ahead of the US central bank meetings next week.

Traders widely expect the BOJ to raise rates by 25 basis points at its September 17 and 18 meeting, but the rally will hinge on whether Governor Kazuo Ueda follows through with hawkish comments. Treasury Secretary Scott Bessent has dared traders to bet against the yen, following historic joint US/Japanese intervention to boost the currency in late July.