Yen rises supported by speculation of a policy adjustment by BoJ

The yen continued to rise, supported by speculation that Japan might adjust its ultra-loose monetary policy, while the dollar approached its lowest level since June against major currencies.

The Bank of Japan differs from most central banks in the world by sticking to stimulus while other banks raise interest rates, but the emergence of signs of rising inflation prompted some investors to bet on the possibility of changing this, a move that would raise the yen.

The dollar at one point fell nearly 1 percent against the yen in Friday trading to a seven-month low of 128.11, after falling 2.4 percent on Thursday.

It was last down 0.6 percent at 128.515 yen.

The dollar index, which measures the greenback’s performance against six major currencies, was largely flat at 102.15, after falling to its lowest since June earlier in the session.

The euro fell 0.1 percent to $1.08460, retreating from the nine-month high it touched earlier in the session.

The pound sterling was last at $1.22340, up 0.2 percent on Friday.