Yen Surges as Traders Bet Against Another Rate Hike

The Japanese yen rose by 0.2% against the US dollar to 159.055, despite mixed economic growth data from Japan's April-June period.

This unexpected move was driven by traders adjusting their expectations for another Federal Reserve rate hike this year, with futures pricing indicating a lower probability of an increase in interest rates.

CME's FedWatch tool puts the odds of the Fed holding rates at 66.9%, up from 47.6% last month, and BNY Global Bank says markets price 'less than one full hike' by December.