LONDON—Japan’s yen surged on Friday and is on track for its biggest weekly rise in four months against the dollar on bets that U.S. interest rates are nearing a peak after data showed the world’s biggest economy unexpectedly contracted in the June quarter.
Futures markets predict that U.S. interest rates will peak by December this year compared with June 2023 at the start of July and the Federal Reserve will cut interest rates by 50 bps next year to support slowing growth.
