The yen has surged strongly, reaching its highest level since February, as the market bets on a rate hike by the Bank of Japan.

Notably, the yen has risen to its highest level since February this year, surpassing the peak reached after the joint intervention by Japan and the United States. As market expectations for a rate hike by the Bank of Japan continue to grow, there has been a dramatic reversal in market sentiment, causing the yen to appreciate against the dollar by as much as 1.4%, reaching 154.06. Last week, the yen had temporarily depreciated to 160.39 against the dollar. The rising expectations for a rate hike by the Bank of Japan, coupled with speculation regarding potential asset allocation adjustments by the Government Pension Investment Fund (GPIF), have driven this latest surge. Before this strong rebound, the market had spent several weeks doubting the long-term effectiveness of the Tokyo and Washington joint intervention. Japan's top foreign exchange official, Jun Mimura, stated last Friday that his stance on the yen issue has not changed, despite the yen gaining strength against the dollar at that time, he maintained his position.