TOKYO: The yen hit its strongest level against the dollar since December, beating all major currencies’ performance on Thursday (Feb 20) amid growing speculation the Bank of Japan (BOJ) will hike rates sooner rather than later.
Japan’s currency climbed as much as 0.8 per cent to 150.21 against the dollar, a level it hasn’t touched since Dec. 9. Government bond yields are also on the rise, with the 10-year benchmark hitting its highest level since 2009. Overnight index swaps are pricing in an 83 per cent chance of a rate hike by the central bank’s July meeting, compared with about 70 per cent odds at the start of this month, with a hike now seen as certain by September.
