With market expectations for a Bank of Japan rate hike growing stronger, the yen has experienced a robust upward trend this month, with gains approaching % so far.

On the same day, in the Tokyo foreign exchange market, the yen surged significantly against the US dollar again. During the early trading hours in Tokyo, the exchange rate briefly rose to 1 dollar to [specific number missing] yen, marking the highest level since [specific month missing] last year.

The Bank of Japan has long maintained a low-interest-rate policy. However, with recent strong performance in multiple Japanese economic indicators, sustained recovery in domestic consumption, and inflation gradually approaching the central bank's 2% target, market expectations for a rate hike by the Bank of Japan have increased, supporting the yen's exchange rate.

On Friday (month day), data released by Japan's Ministry of Internal Affairs and Communications showed that Japan's core Consumer Price Index (CPI) reached a new high in [month]. Bank of Japan Governor Kazuo Ueda has also stated in several recent speeches that if wages continue to rise and support consumption, thereby allowing companies to keep increasing wages, the Bank of Japan is prepared to continue raising interest rates.

Looking ahead, analysts at Japan's Mitsubishi UFJ Financial Group pointed out that under such inflationary conditions, the subsequent interest rate hikes by the Bank of Japan are worth watching.

This Friday (month/day), Japan's Ministry of Internal Affairs and Communications is set to release the core inflation data for Tokyo. If the figures indicate persistent inflationary pressures, combined with the already published national data for Japan in the previous month, it is expected that the Bank of Japan will adopt a more hawkish stance.

The Bank of Japan has raised its policy rate from -0.1% to 0.1% this month and is expected to take further rate hikes, which is likely to continue supporting the yen.