Yen Soars as BOJ Hawkish Hopes Fuel Strongest Week in Over a Month

The Japanese yen has strengthened against the US dollar and is on track for its strongest week in over a month. The currency surged to as high as 155.25 per dollar in morning trade, just shy of the 155.20 high it reached last month after a rare joint intervention by Japan and the US.

Analysts attribute the yen's gains to increasing bets that the Bank of Japan will be more hawkish than previously expected when it meets on September 17-18. Markets are reassessing the BOJ's path, with some speculating that Japan may continue normalizing policy into 2027.

The dollar index remains flat at 99.01, while the euro and sterling also remain unchanged. However, investors are looking ahead to key data releases, including nonfarm payrolls and CPI inflation, which could impact interest rates and the value of the US dollar.