Japanese yen jumps to 153.80 against US dollar, nearly 4%
The Japanese yen just jumped to 153.80 against the US dollar, making it the strongest performer among major currencies this month with a nearly 4% gain.
This surge picked up speed after the yen moved back below the key 155 level, causing traders who bet against it to quickly change course.
Markets eye BOJ meeting, US inflation
Most of this momentum comes from growing expectations that Japan's central bank, the Bank of Japan, or BOJ, will raise interest rates soon, something markets have been waiting on for a while.
There's also buzz about a potential shift in the Government Pension Investment Fund's asset allocation, and traders are starting to unwind risky bets involving cheap yen borrowing.
All eyes are now on an upcoming BOJ meeting and US inflation data later this week, both of which could shape where the yen heads next.