Asian currencies are climbing as the yen strengthens, a win for the Taiwan dollar and other regional money but a headache for exporters who prefer a weak home currency.

• The Taiwan dollar rose for a fourth straight day to its strongest level in over three months, while China's yuan hit a three-and-a-half-year high and the Korean won sits near a two-year peak.
• The yen is the driver — it has jumped to seven-month highs, forcing traders who bet against it to buy it back.
• Years of cheap borrowing in yen to buy dollars and other higher-paying assets are now unwinding, pulling money out of the dollar.
• Japan's economy looks better than thought and real wages are growing, so the market expects the Bank of Japan to raise interest rates faster.
• The dollar is staying weak even though oil is near $100 a barrel and Middle East tensions are pushing inflation worries higher.

Outlook: US inflation data this week and next week's back-to-back Fed, Bank of Japan and Taiwan central bank decisions will set the next direction for all three currencies.