FX.co ★ Yen Heads for Second Weekly Gain

The Japanese yen strengthened to approximately 155 per dollar on Friday and appears set for its second straight weekly gain. This uptick is driven by speculation that the Bank of Japan might increase interest rates later this month. Reports suggest that senior figures within Prime Minister Sanae Takaichi's administration would not oppose a rate hike by the central bank in December, though some top officials remain cautious regarding the timing. Market anticipation is high for a rate move this month, with projections for one to two additional increases next year. These expectations were bolstered after BOJ Governor Kazuo Ueda expressed confidence in Japan’s economic prospects, indicating the central bank would carefully evaluate the pros and cons of raising rates and act accordingly. Additionally, Finance Minister Satsuki Katayama remarked this week that she foresees the central bank managing policy in a manner that achieves its 2% inflation target through its unique strategies.