Yen Rallies to Seven-Month High on BOJ Rate Hike Expectations

The Japanese yen has reached its strongest level in seven months, driven by bets on faster interest rate hikes by the Bank of Japan and potential capital repatriation.

The dollar fell as much as 1.4% to 154.05 yen, with traders citing stop-loss orders triggered around 155.2 yen per dollar.

Speculators now hold a net short position worth $7.198 billion in the yen, up from a five-month low of $3.03 billion in early August.