Bank of Japan Governor Kazuo Ueda said the timing of the next interest rate hike was "approaching" as the economy was moving in line with the central bank's forecasts, the Nikkei newspaper reported, leaving open the chance of a December rate increase.

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Bank of Japan Governor Kazuo Ueda said interest-rate hikes are “nearing” as inflation and economic trends develop in line with the central bank’s forecasts, without explicitly supporting an increase in December.

The next rate hike is “nearing in the sense that economic data are on track.” At the time of writing, the USD/JPY pair is trading around 150.26, up 0.42% on the day.

The yen surged to a six-week high following unexpected inflation increases in Tokyo, heightening speculation of a Bank of Japan interest rate hike. As the dollar weakens due to holiday-thinned trading and previous gains,