Yen Hits Seven-Month High, Up 5% in a Week on BOJ Tightening Bets

The yen gained nearly 5% against the dollar in the week through September 8, 2026, reaching a seven-month high. Reuters attributes the rally to expectations of faster Bank of Japan tightening, with markets pricing 68% odds of a September rate hike. The BOJ raised its overnight call rate to 1.0% in June from 0.5%. A 5% weekly move in a major currency pair is unusually large.