According to Jinshi Data, the yen strengthened against other G10 and Asian currencies in early trading due to the prospect of further interest rate hikes by the Bank of Japan. Alvin T. Tan, head of Asian foreign exchange strategy at Royal Bank of Canada (RBC) Capital Markets, said that Japan's August CPI data released earlier showed that the recent trend was "quite active." Tan said this may allow the Bank of Japan to continue on its policy normalization track. In addition, as risk sentiment recovers further, the Bank of Japan may be keen to continue raising interest rates.