Bank Of Japan

The Bank of Japan raised its benchmark interest rate to 1.25%, its highest level since 1995, amid inflation pressures and a historic weak yen, defying political preferences.

Global FX speculators shift to a net long position on the Japanese yen for the first time since February, driven by expected BoJ rate hikes and rising bond yields.

The dollar has fallen to 3.00 shekels, while the euro dropped to 3.49 shekels. Markets are awaiting US employment data, with forecasts of 55,000 new jobs and an unemployment rate of 4.1%.

The Japanese currency is strengthening sharply as statements from the Bank of Japan and American support increase market bets on a shift in monetary policy.

The Nikkei index is down 0.4%, the Kospi is up 0.8%, and the Hang Seng is climbing 0.7%. Japan's inflation rate reached 1.9% in July amid rising energy costs.

Global currency markets saw quieter trading on Wednesday amid cautious anticipation. The US dollar continues to trade near a six-week low, while the Japanese yen faces sharp fluctuations due to political tensions in the Persian Gulf and upcoming US employment data.

The yen's surge has reignited assessments that authorities in Japan entered the foreign exchange market to curb the currency's weakening. The Bank of Japan is expected to publish its interest rate decision tomorrow, with expectations of no change.