The yen has risen more than 4% since the start of September to near seven-month highs against the dollar as markets sharply revised expectations for the Bank of Japan's interest-rate trajectory. Domestic price pressures, increasingly hawkish signals from Bank of Japan policymakers and implicit backing from Washington have reinforced expectations of further monetary tightening, marking a turnaround from just over a month earlier when joint currency interventions failed to move the yen significantly away from multi-decade lows. Goldman Sachs said a possible reallocation by Japan's Government Pension Investment Fund, or GPIF, could provide additional structural support: a 5-percentage-point shift of its roughly $2 trillion portfolio into domestic fixed income would theoretically generate about $100 billion in dollar-yen selling, or roughly half of Japan's annual current-account surplus, while potentially unwinding yen-funded carry trades. Goldman said yen strength could increase divergence across Asian currencies, with the South Korean won showing the strongest sensitivity to yen moves since 2022, although any GPIF shift remains a scenario rather than a formal decision.