Sept 8 (Reuters) - As U.S. markets return from the Labor Day holiday, calm in global markets was broken on Monday and Tuesday after a fresh surge in Japan's yen to its strongest levels since February.
While there's persistent nervousness about more intervention by Japanese authorities after the summer's heavy yen-buying, this move seemed more like repositioning ahead of what looks like an almost certain Bank of Japan interest rate rise next week.
The case for a BOJ rate hike was bolstered on Tuesday after an upgrade to Japan's second-quarter GDP estimates and the biggest yearly rise in its real wages in five years in July.
There has even been speculation recently that the BOJ could consider a bigger rate rise than the normal 25 basis points, although that remains an unconventional view.
For now, the yen - along with China's yuan and South Korea's won - is gaining significant ground on the dollar. Markets may grow a little nervous about the ripple effects of unwinding yen-funded carry trades around world markets. Tokyo's benchmark Nikkei stock index recoiled almost 2% on Tuesday.