The Japanese yen rose on the dollar on Wednesday, on hopes for an improvement in the country's long-moribund economy as well as the possibility of another revaluation of the Chinese yuan. The yen was up 0.66%, with one dollar recently trading at 111.03 yen. "While we recognize that political concern may overhang the market in the short term, we expect good fundamentals to prevail eventually and yesterday recommended scaling into a short USD/JPY position," analysts from the Royal Bank of Canada said Wednesday. Japan is holding an election on Sept. 11. In addition, financier George Soros told a Korean newspaper that he sees another 1% to 2% revaluation in the yuan, possibly as early as September. The dollar also was lower against the euro and the pound following the Federal Reserve, as expected, lifting interest rates by a quarter point to 3.5% on Tuesday. Analysts from Danske Bank see far more rate hiking to come. "Price pressures are still abound in the economy, and with nominal growth rates above 6% we continue to find it naive to think that the fed funds rate will settle at 4% forever," the bank said. The pound was also helped as markets took the latest Bank of England inflation report to be slightly hawkish.