Yen Gains as BOJ Rate Hike Speculation Grows
The yen surged to a more than two-month high against the dollar, trading down 0.8% at 150.27. Market jitters over Trump’s tariff threats, combined with speculation of further Bank of Japan (BOJ) rate hikes, supported the yen. Against the euro, the yen rose 1%, marking its largest daily gain since January 27.
BOJ Governor Kazuo Ueda’s meeting with Prime Minister Shigeru Ishiba did not address long-term interest rates, which reassured markets. Bank of Singapore strategist Moh Siong Sim suggested this may have been interpreted as a green light for more yen strength and a possible BOJ hike soon.
