Yen Surge Sets Stage for BOJ Rate Hike Amid Robust Global Growth

The Japanese yen has surged to its strongest levels since February, breaking calm in global markets on Monday and Tuesday.

This move seems more like repositioning ahead of an almost certain Bank of Japan interest rate rise next week, bolstered by a recent upgrade to Japan's second-quarter GDP estimates and the largest yearly rise in real wages in five years.

The case for a BOJ rate hike has gained momentum, with speculation that the bank may consider a bigger 25-basis-point increase than usual.

Meanwhile, China's exports rose 25% year-over-year in August, lifting its global trade surplus and surplus with the U.S. to $119 billion and $29 billion, respectively.