Yen Soars Amid Rate Hike Speculations in Japan

The yen surged to a nine-week high amid expectations of interest rate hikes by the Bank of Japan. Meanwhile, the U.S. dollar held steady as markets awaited U.S. payroll figures. Analysts foresee complexities in employment data interpretation due to earlier revisions in population growth figures.

The yen climbed to a nine-week high as traders bet on more interest rate hikes in Japan this year. This comes as the U.S. dollar and other major currencies showed little movement ahead of the release of U.S. payroll figures.

Economists expect the U.S. unemployment rate to remain steady at 4.1% while forecasting 170,000 new jobs added in January. However, analysts caution that recent revisions to population growth figures by the U.S. Census Bureau may complicate interpretations of the employment data.

Meanwhile, the dollar index stood flat at 107.71, with the yen gaining strength against it amid rate hike expectations from the Bank of Japan. Comments by BOJ board member Naoki Tamura have bolstered these expectations, suggesting rates could rise to at least 1% by late 2025.

(With inputs from agencies.)