Yen Climbs as BOJ Steps Up Rate-Hike Signaling

According to Bpaynews, the Japanese yen strengthened as reports indicated the Bank of Japan is intensifying its hawkish messaging, pushing USD/JPY and yen crosses lower. Traders are now watching the Fed’s preferred inflation gauge, the PCE report, for confirmation that disinflation remains on track. U.S. equities surged as the Dow Jones Industrial Average rose roughly 650 points on renewed rate-cut expectations. Tech stocks were mixed, with Apple and Alphabet hitting record highs while Nvidia declined due to increased AI chip competition. The yen's rise reflects expectations that the BOJ could raise rates to 0.75% by March, narrowing yield differentials and increasing carry trade unwinding risks. Meanwhile, a 5% drop in Thanksgiving air travel volumes suggests consumer caution amid inflation concerns.