The yen has fallen to its lowest level against the dollar since November, putting pressure on the Bank of Japan to tighten its ultra-loose monetary policy and strengthen the currency.

The US Federal Reserve chair Jay Powell suggested greater domestic interest rate hikes, potentially expanding the US-Japan borrowing cost disparity.

Japan is the only major developed market not to hike interest rates in the previous 18 months despite the greatest inflation shock in a generation.

Recent economic strength and domestic price hikes are boosting market hopes that the BoJ may tighten its stance against a yen depreciation.

The BoJ raised its 10-year government bond yield limit to 1%, potentially signaling a victory over deflation and the end of yield curve control.