Japanese yen climbs 4% against the dollar as Bank of Japan rate hike bets grow
The Japanese yen rose more than 4 percent against the US dollar on Tuesday. Investors are increasing expectations for a policy shift by the Bank of Japan to combat inflation.
Japan's yen reached its highest level against the US dollar this year, climbing over 4 percent during trading on Tuesday. Market participants raised their bets on the Bank of Japan raising interest rates in an effort to address rising inflation. The currency posted strong gains throughout last week. Investors benefited from reduced liquidity and closed markets on Monday due to a US holiday. Some analysts predict the central bank could hike rates at two consecutive meetings. A joint intervention by Japanese and American authorities in July previously pushed the yen near 164 per dollar after four decades of lows, though it subsequently retreated before regaining momentum.
