Yen Rises Ahead Of Bank Of Japan Decision As Rate Hike Talk Swirls

The yen has rallied against the dollar on expectations for a Bank of Japan rate hike and a cut by the Federal Reserve later in the year (Credit: AFP)

The yen extended its rally against the dollar Wednesday ahead of a much-anticipated Bank of Japan announcement, with debate centred on whether it will hike interest rates, while equities mostly rose on growing hopes for a cut in US borrowing costs.

With the two biggest economic events of the week looming, traders were jockeying for position as authorities in Tokyo play their cards close to their chest, with comments from Japan's new top forex chief suggesting an increase could be on the cards.