Yen jumps on BOJ hike bets, dollar slips on Waller comments

On September 3, the yen surged 2% against the U.S. dollar, while the dollar weakened due to comments from Federal Reserve Governor Christopher Waller, according to wire material. Traders increased their expectations for a Bank of Japan interest rate hike, fueled by BOJ data showing no official intervention behind Wednesday's strong gains.

However, analysts noted that the yen's rise may be due to traders' bets on a more aggressive rate hike from the central bank. BOJ board member Hajime Takata's hawkish comments also contributed to the yen's strength. The dollar index fell 0.58% to 99.02, with the euro up 0.3% at $1.1622. Traders now see a 46% chance of a Fed rate hike this month, down from 59% before Waller's comments.

Main economic releases for the U.S. include U.S. jobs data on Friday, which is expected to show 56,000 jobs added last month. Consumer and producer price inflation reports for August are due next week. The Swiss franc also strengthened after data showed inflation jumped to 0.8% year-on-year.