Bank of Japan Governor Kazuo Ueda said the timing of the next interest rate hike was "approaching" as the economy was moving in line with the central bank's forecasts, the Nikkei newspaper reported, leaving open the chance of a December rate increase.

Bank of Japan Governor Kazuo Ueda said interest-rate hikes are “nearing” as inflation and economic trends develop in line with the central bank’s forecasts, without explicitly supporting an increase in December.

The Japanese yen rose to a six-week high against the dollar Friday. While trading was thin because of the Black Friday holiday in the U.S., the moves are still worth watching after volatility in the Asian currency sparked market turmoil earlier this year.

Bank of Japan Governor Kazuo Ueda said the next interest rate hikes are "nearing in the sense that economic data are on track," the Nikkei business daily reported on Saturday. "I would like to see what kind of momentum the fiscal 2025 shunto (spring wage negotiation) creates,

Tokyo inflation accelerated more than expected in November while other data showed the economy moving broadly in line with Bank of Japan projections, feeding into speculation over a possible December rate hike and bumping the yen.

The Japanese Yen rallied as a stronger Tokyo CPI lifted December BoJ rate hike bets. Geopolitical risks, trade war fears and depressed US bond yields also benefit the JPY. The USD hits a fresh two-week low and contributes to the USD/JPY pair's downfall.

The BOJ ended negative interest rates in March and raised its short-term policy rate to 0.25% in July on the view Japan was making steady progress towards durably achieving its 2% inflation target. Governor Ueda has said the BOJ will keep raising rates if inflation remains on track to stably hit 2% as it projects.

The yen surged to a six-week high following unexpected inflation increases in Tokyo, heightening speculation of a Bank of Japan interest rate hike. As the dollar weakens due to holiday-thinned trading and previous gains,

BANK of Japan (BOJ) governor Kazuo Ueda said the next interest rate hikes are “nearing in the sense that economic data are on track,” the Nikkei business daily reported on Saturday (Nov 30). Read more at The Business Times.

The yen jumped as much as 1% to a six-week high at 150 per dollar on Friday, after faster than expected inflation in Tokyo supported bets for a Bank of Japan interest rate hike next month.