Forex News: Yen Rises Amid Rising BoJ Rate Hike Bets

Yen Rises Amid Rising BoJ Rate Hike Bets

(RTTNews) - The Japanese yen strengthened against other major currencies in the early European session on Wednesday, as some traders speculate that the Bank of Japan or the BoJ is likely to consider a 50bps increase at its next meeting.

As Prime Minister Sanae Takaichi's administration takes a stronger stand against excessive weakening in the Japanese yen, markets are increasingly anticipating that the BoJ would hike interest rates at its next meeting.

U.S. Treasury Secretary Scott Bessent cautioned investors not to wager against the Japanese yen, claiming to have "pretty good insight" into the Bank of Japan's (BoJ) impending choices and currency interventions.

European stocks traded lower after U.S. forces destroyed five Iranian tankers and Tehran responded with missile strikes on Jordan, raising fears of a wider regional conflict.

Traders also looked ahead to Thursday's European Central Bank meeting, with a 25-basis points rate hike fully priced in.

In economic news, data from the Japan Machine Tool Builders Association, or JMTBA, showed that Japan's machine tool order growth accelerated sharply in August. Machine tool orders jumped 64.7 percent year-on-year in August, much faster than the 50.4 percent surge in the previous month. Orders have been rising since July 2025.

On a monthly basis, machine tool orders rebounded 2.5 percent versus a 5.1 percent fall in July.

In the European trading today, the yen rose to a 9-month high of 89.58 against the NZ dollar, from an early low of 90.15. The yen may test resistance around the 88.00 region.

Against the euro, the pound and the Swiss franc, the yen advanced to 178.07, 207.40 and 189.29 from early lows of 178.88, 208.34 and 190.07, respectively. If the yen extends its uptrend, it is likely to find resistance around 176.00 against the euro, 206.00 against the pound and 188.00 against the franc.

Against Australia, the U.S. and the Canadian dollars, the yen climbed to 110.65, 152.95 and 111.06 from early lows of 111.11, 153.83 and 111.62, respectively. The yen may test resistance around 109.00 against the aussie, 151.00 against the greenback and 110.00 against the loonie.

Looking ahead, U.S. MBA mortgage approvals data are slated for release in the New York session.

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