Yen Under Scrutiny as Japanese Officials Consider Intervention

Currency markets are closely watching the yen after its sharp drop last week. Japanese officials may intervene to stabilize the currency's value, following reports of rate checks being conducted.

The Bank of Japan raised interest rates on Friday to their highest level in 31 years at 1.25%, but this move did not boost the yen as investors were disappointed by two dissenting votes and a lack of explicitly hawkish guidance.

Major central banks, including the Federal Reserve and European Central Bank, have recently raised interest rates, prompting investors to reevaluate global interest rates and inflation.

Traders are now pricing in a 55% chance of a rate hike at the Fed's next meeting in October, up from 42.5% a week earlier.