A wild week in the currency markets has left hedge funds heading for the exits on their dollar trades and turning their attention toward the Japanese yen.

The yen climbed to an eight-week top versus the U.S. dollar on Thursday after a Bank of Japan policy board member advocated continued interest-rate hikes.

The U.S. dollar slumped to an eight-week low against the yen and hovered near a one-month low versus the British pound as trade war fears eased. Investors are reassessing the Federal Reserves rate outlook while the Bank