Yen Gains Momentum as BOJ Hints at Policy Shift

The Japanese yen is set for a fourth consecutive weekly gain as traders speculate that the Bank of Japan (BOJ) may tighten monetary policy. The yen has rebounded rapidly after trading close to a 30-year low last month and is on track for a 1.75% rise this week. The BOJ's Governor Kazuo Ueda's forecast of a challenging year ahead has led traders to believe that the BOJ could end its negative interest rate policy as early as January. Meanwhile, global stocks are on track for their first weekly loss since October as the rally fueled by hopes of interest rate cuts by the US Federal Reserve and the European Central Bank pauses ahead of key US jobs data. Tokyo's Nikkei ended the week down 3.4%, with exporters such as automakers being hit the hardest.