Yen Surges as Traders Bet on Faster BOJ Tightening and Repatriation

The Japanese yen has surged to a seven-month high against the US dollar, driven by expectations of faster Bank of Japan policy tightening and growing bets that Japanese investors will repatriate funds.

The main event this week is Friday's U.S. inflation report, which could shape the Federal Reserve's decision on whether to raise interest rates later this month and influence the dollar's direction.

The European Central Bank also meets on Thursday and is widely expected to raise euro zone interest rates.

The dollar fell to as low as 154.05 yen, its weakest level since February, and was last down 1.1% at 154.4.