Yen Soars Towards 153 Amid BOJ Hawkish Bets

The Japanese yen has strengthened towards 153 per dollar, marking its strongest level since January, as an upward revision to Q2 GDP and a sharp acceleration in wages reinforce expectations of a more hawkish Bank of Japan.

Japans economy expanded 1.4% annualized in Q2, while real wages rose 2.4% year-on-year in July, their strongest gain since May 2021, solidifying the case for further monetary tightening.

Markets are now pricing in a near-certain BOJ rate hike next week, with expectations of a potential follow-up in October.