Market analysis: The yen may receive a boost due to increased bets on interest rate hikes.

Mitsubishi UFJ analyst Derek Halpenny said in a report that if the market increases its bets on further rate hikes this year, the yen may strengthen in the coming months. Data shows that the market is only pricing in expectations of a 3 basis point rate hike in September. He said this seems too low. If the U.S. and Japan reach a less destructive trade agreement before the end of the tariff suspension period on July 9, it will increase the likelihood of the Bank of Japan resuming rate hikes. After the negotiations, wage increases in Japan have accelerated, and data on Friday showed a surge in household spending in May, which should also encourage further rate hikes.