Yen Rallies on Bets of Bank of Japan Rate Hike

The Japanese yen surged to a one-month high of around 155 per dollar on speculation that the Bank of Japan will raise interest rates. Traders pointed to growing rate-hike expectations in Japan, while expectations for U.S. rate moves receded. The rally also strengthened Japanese government bonds, and market watchers cited talk of possible intervention. The move came as Japan's annual wage talks, known as Shunto, delivered an average minimum wage increase of 1,177 yen, up 56 yen and the second-largest rise on record.