Yen Gains on BOJ Rate-Hike Bets as Traders Await US Payrolls

The yen gained as investors ramped up bets the Bank of Japan will hike interest rates this week and traders waited on key US labor data.

The Japanese currency was 0.3% higher at 155.33 against the greenback in afternoon trade in New York. Option markets remain positive on the yen while trimming its bullish outlook. US traders are bracing for the November monthly jobs report — which was delayed by the government shutdown — to reinforce the view that the labor market is cooling, which could support expectations for further rate cuts next year.