The Japanese yen surged on Tuesday after reports that Kazuo Ueda will be the next governor of the Bank of Japan (BOJ). According to Nikkei, the Japanese government is set to appoint Ueda, an academic, to replace outgoing governor Haruhiko Kuroda.

Ueda, a professor at the University of Tokyo, is well-respected in the economic field and is considered an inflation hawk. This means he is likely to prioritize inflation over growth, which could be a major shift from the BOJ’s current policies.

The yen rose on the news, as investors anticipate that Ueda’s policies could lead to a stronger currency. The Japanese ruling party is reportedly divided on the issue, with some favoring the appointment of former finance minister Taro Aso.

The BOJ has been on an inflation mission since 2013, when Kuroda took over. He has implemented a number of policies to boost inflation, including aggressive quantitative easing and negative interest rates.

However, inflation remains stubbornly low and some economists have argued that Kuroda’s policies have not been effective. Ueda is likely to take a different approach, which could lead to higher inflation and a stronger yen.

The final decision on who will be the next BOJ governor will be made by Prime Minister Yoshihide Suga. Until then, the yen is expected to remain volatile as investors await the outcome.