Yen surges to seven-month high amid hawkish BOJ bets and ahead of US inflation data

The Japanese yen strengthened significantly against the dollar, reaching a seven-month high, driven by expectations of tighter monetary policy from the Bank of Japan and potential repatriation of capital by Japanese investors. The dollar slid 1.14% against the yen to 154.42. Traders are also looking ahead to upcoming U.S. inflation data and the European Central Bank meeting this week.