Yen Surge Sparks Speculation on BOJ Rate Hike

The yen surged to a six-week high following unexpected inflation increases in Tokyo, heightening speculation of a Bank of Japan interest rate hike. As the dollar weakens due to holiday-thinned trading and previous gains, safe haven flows and tariff concerns further bolster the yen.

The yen climbed to its highest in six weeks, jumping 1% to 150 per dollar, in response to faster-than-anticipated inflation figures from Tokyo. This development has intensified speculation of a potential interest rate hike by the Bank of Japan next month.

Meanwhile, the U.S. dollar has struggled against major currencies in reduced trading during the Thanksgiving holiday. Despite the dollar's recent surge, current market conditions suggest an ongoing weakness, with the dollar down 0.93% against the yen.

In Europe, mixed messages from economic data and dovish remarks by ECB officials have impacted the euro. However, the yen's appreciation continues amid safe haven flows, fueled by tariff threats from the U.S. against global trade partners, and anticipation of possible BOJ policy adjustments.

(With inputs from agencies.)