Yen Stays Weak Amid Stronger Dollar and Rising Rates

The Japanese yen has continued to trade near two-week lows against the US dollar, hovering around 158.5 per dollar on Friday.

This comes as the dollar and Treasury yields gain strength due to expectations of a further tightening of Federal Reserve policy to combat inflation.

Additionally, the Bank of Japan's recent rate hike last week was viewed as insufficiently hawkish by some, with two officials dissenting from the decision.

Makoto Sakurai, a former board member, predicts that the central bank will raise interest rates roughly once every three months, potentially lifting them to 2% by around June next year as it seeks to tackle mounting inflationary pressures.