Yen Soars to Seven-Month High as Rate Hike Expectations Rise

The Japanese yen surged to a seven-month high against the US dollar on Tuesday, fueled by expectations of rate hikes from the Bank of Japan.

The currency traded as much as 1% firmer at 152.89, its strongest since February, after data showed Japan's economy grew faster than initially estimated in the April to June quarter.

Real wage growth figures also supported the view that the Bank of Japan will continue hiking interest rates next week and well into next year.

The gains for the currency weighed on a jittery stock market, with the Nikkei 225 up 0.3% and MSCI's broadest index of Asia-Pacific shares outside Japan 0.5% higher.