The yen has strengthened sharply against the dollar, with USD/JPY falling to an intraday low of ¥152.89 in Tokyo on the 8th, its lowest level in seven months. Markets are assigning a high probability to a 25-basis-point Bank of Japan (BOJ) rate increase from 1.0% to 1.25% at the 17th–18th meeting, supported by stronger Japanese growth and wages. Expectations of possible U.S.-Japanese currency action, including intervention, and the unwinding of yen carry trades (borrowing yen to buy higher-yielding assets) are adding to yen demand. The won has also strengthened on export-related dollar supply, leaving the yen near ₩875 per ¥100 in South Korea. Analysts expect the exchange-rate outlook to depend on BOJ policy, U.S. and Japanese official responses, Middle East developments and U.S. inflation data.