The Japanese yen strengthened toward 155.5 per dollar on Thursday, reaching its highest level in four weeks, following hawkish comments from Bank of Japan Governor Kazuo Ueda. On Wednesday, Ueda stated that the BOJ would discuss the possibility of raising interest rates at its upcoming policy meeting, signaling the central bank’s readiness to tighten borrowing costs if the economy performs as expected. He also expressed growing confidence in wage increases, citing positive feedback from various industries. Ueda’s remarks aligned with those made by BOJ Deputy Governor Ryozo Himino a day earlier. Additionally, Japan’s Finance Minister Katsunobu Kato reiterated that the government would take "appropriate action" to support the yen, further boosting the currency. The yen also gained from a pullback in the US dollar, driven by a surprise drop in US core inflation, which fueled expectations of further Federal Reserve rate cuts this year.
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