The yen weakened in the foreign exchange market, temporarily falling to the ¥159-per-dollar range. The move was driven by growing expectations of a US interest rate hike and higher oil prices, with trading focused on the Japan-US interest rate differential. Concerns about intervention by the government and the Bank of Japan have also intensified.
The yen weakened in the foreign exchange market, falling to the ¥159-per-dollar range for the first time in approximately 3 weeks.
The move came as US economic data exceeded market expectations and rising crude oil futures prices heightened concerns about inflation, increasing expectations that the United States would raise interest rates sooner than previously anticipated.
As a result, yen-selling and dollar-buying spread as traders focused on the Japan-US interest rate differential, and the yen was reported to have temporarily fallen to the ¥159-per-dollar range in the New York market.
Market participants said concerns about foreign exchange intervention by the government and the Bank of Japan had intensified further.