The Japanese yen traded around 156 per dollar on Monday after gaining more than 2% the previous week, as markets increasingly anticipated Bank of Japan (BOJ) interest-rate increases. Takuji Aida, an economic adviser to Prime Minister Sanae Takaichi, said the central bank was likely to raise rates in September and again by January next year. The remarks suggest growing recognition within the previously dovish Takaichi administration that further BOJ tightening may be needed to curb excessive yen weakness. The currency was also supported by the unwinding of carry trades (borrowing cheaply to invest elsewhere), expectations of capital repatriation and rising political pressure from the US. Separately, Japan’s foreign exchange reserves fell by a record $79.6 billion in August after Tokyo carried out its largest-ever yen-buying intervention, spending about $99 billion between July 30 and August 26 to contain persistent currency weakness.