Yen Rallies as BOJ Rate Hike Looms Amid Dollar Weakness

The Japanese yen has been on a strong run, surging for two consecutive sessions and putting it on track to gain about 2.5% for its strongest weekly performance since July.

This marks a significant recovery for the yen, which had been under pressure from the US to support it through tighter monetary policy.

The Bank of Japan is expected to deliver a quarter-point rate hike this month and an additional increase in December, following hawkish remarks from central bank officials.

The yen also benefited from broad dollar weakness after Federal Reserve Governor Christopher Waller said he would support keeping rates steady if price pressures continue to ease.