Yen Soars on BOJ Rate Hike Expectations, Dollar Under Pressure

The Japanese yen has reached a near seven-month high of 152.89 per dollar, surpassing levels seen during Japan's July intervention and its strongest since February.

This rally is driven by growing expectations of a Bank of Japan rate hike next week, which is putting pressure on the dollar ahead of U.S. inflation data this week.

Traders and analysts point to several factors contributing to this sea change, including bets on faster BOJ tightening, potential repatriation of Japanese funds, unwinding of carry trades, and U.S. political pressure.