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ING Bank: The yen strengthened slightly due to expectations of an interest rate hike by the Central Bank of Japan
The yen strengthened against most other G10 and Asian currencies in the Asian session, as the prospect of further rate hikes by the Central Bank of Japan. Economists at ING said in a report that the higher-than-expected inflation data released earlier in Japan should be the main focus of the market and the Central Bank of Japan's follow. Economists added that the data indicated the possibility of a rate hike in October, but ING still assumes a rate hike in December as the basic assumption.