Yen climbs towards 153 as hawkish BOJ bets gain traction
Mumbai, Sept. 8 -- The Japanese yen strengthened towards Euro153 per dollar on Tuesday, reaching its strongest level since January, as an upward revision to Q2 GDP and a sharp acceleration in wages reinforced expectations of a more hawkish Bank of Japan. Japan's economy expanded 1.4% annualized in Q2, while real wages rose 2.4% year-on-year in July, their strongest gain since May 2021, strengthening the case for further monetary tightening. Markets are now pricing in a near-certain BOJ rate hike next week, with expectations of a potential follow-up in October. Carry-trade unwinding and Japanese investor repatriation flows added further impetus to the yen's advance, while the dollar index slipped towards 98.7 as markets awaited US inflatio...
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