Yen rises nearly 4% this month as markets await Fed and BOJ decisions

The Japanese yen has climbed nearly 4% this month, trading at 153.49 per dollar. Market attention is focused on the Federal Reserve's upcoming rate decision, with traders pricing in an 86% chance of a hike. The Bank of Japan is set to meet two days later. Analysts suggest that while a quarter-point hike is largely priced in, the yen's future trajectory depends on signals regarding the pace of further rate increases. Meanwhile, hedge funds are adjusting carry trade positions as the yen's movement impacts global markets.