The Japanese yen rose yesterday as traders awaited the governor of the Bank of Japan to comment on the future of interest rates.

At the start of the day the yen stood at $0.0086, €0.0067 and £0.0045.

Governor of the Bank of Japan Toshihiko Fukui is to speak out on Friday after a two-day policy meeting over the future of rates in the country, with many speculating he might give the nod to a rate rise.

The bank is expected to keep Japanese interest rates at 0.25 per cent, but Mr Fukui could suggest that rate rises could come before the end of the year.

Monday also saw official Japanese statistics released showing capital spending by businesses jumped by 16.6 per cent between April and June compared with a year ago.

The rise in capital sending is at the highest on record and shows the Japanese economy has been performing better than expected - after previous weaker data.