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Hong Kong, China — The yen extended its rally against the dollar Wednesday ahead of a much-anticipated Bank of Japan announcement, with debate centered on whether it will hike interest rates, while equities mostly rose on growing hopes for a cut in US borrowing costs.
With the two biggest economic events of the week looming, traders were jockeying for position as authorities in Tokyo play their cards close to their chest, with comments from Japan’s new top forex chief suggesting an increase could be on the cards.
Bets on a second lift since March — which was the first in 17 years — have surged in recent days, pushing the yen to 152.12 per dollar and putting the currency on course for its best month in a year and a half, according to Bloomberg data.
