Yen Surges to Seven-Month High on BoJ Hike Bets and US Inflation Fears

The Japanese Yen has surged to a seven-month high against the US Dollar amid growing expectations of a Bank of Japan interest-rate hike.

Speculation over a potential shift in the Government Pension Investment Fund's asset allocation also contributed to the yen's strength.

Last week, BoJ board member Hajime Takata hinted at a more aggressive approach from the central bank, suggesting that a 25-basis-point hike 'is not necessarily set in stone.'

Traders will closely monitor this week's US Producer Price Index and Consumer Price Index inflation data to gauge expectations for the Federal Reserve's next policy move.