Yen Surges More Than 1 Percent on BOJ’s Remarks; Dollar Sinks Ahead of US Inflation

Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken on Sept. 23, 2022. Florence Lo/Reuters

SINGAPORE/LONDON—The yen jumped on Monday as comments from Bank of Japan (BOJ) Governor Kazuo Ueda stoked hopes that Japan could soon herald a new era away from negative rates, while the dollar slid ahead of this week’s key U.S. inflation reading.

The greenback tumbled ahead of U.S. inflation data due on Wednesday, with traders on the lookout for whether the world’s largest economy is indeed on track for a “soft landing,” and whether the Federal Reserve has further to go in raising rates.