Yen Hits Seven-Month High as Traders Bet on BoJ Rate Hike

The Japanese yen has reached its highest level against the US dollar in seven months, surpassing levels seen during Japan's July intervention. The yen strengthened to as much as 153.53 per dollar in morning trading on Tuesday. This move is attributed to traders unwinding short positions amid growing bets of a Bank of Japan interest-rate hike.

The dollar was subdued ahead of CPI data this week, which may have contributed to the yen's rise. The Bank of Japan's potential rate hike has been a major factor in the yen's recent rally, as investors seek safer assets amidst global economic uncertainty.