Yen Surges to Seven-Month High on Hopes for BoJ Rate Hikes

The yen has surged to a seven-month high against the U.S. dollar, driven by expectations of further rate hikes from the Bank of Japan. The Japanese currency traded as much as 1% firmer at 152.89, its strongest level since February.

This comes after data released on Tuesday showed Japan's economy grew faster than initially estimated in the April to June quarter, alongside real wage growth figures that cemented expectations for continued rate hikes from the Bank of Japan next week and into next year.

The gains for the currency weighed on a jittery stock market, with the Nikkei 225 up 0.3% and MSCI's broadest index of Asia-Pacific shares outside Japan 0.5% higher.