The yen rose against the dollar in the foreign exchange market on the 7th, briefly reaching the low ¥154 range to the dollar. Yen buying and dollar selling driven by expectations of a narrowing US-Japan interest rate differential prevailed.
The yen rose against the dollar in the foreign exchange market on the 7th, briefly reaching the low ¥154 range to the dollar. It was the yen's strongest level in about six months, against a backdrop of persistent expectations that the Bank of Japan will raise interest rates further.
Yen buying and dollar selling driven by expectations of a narrowing US-Japan interest rate differential prevailed, while the retreat in expectations of an early rate hike by the US Federal Reserve also supported the yen's appreciation. Some market participants said yen buying intensified amid thin trading.
Reports said that US Treasury Secretary Bessent (ベセント) had called on Japan to shift away from its accommodative policy of maintaining low interest rates. Market expectations grew that the US comments could accelerate the Bank of Japan's pace of rate hikes.
As of 5 p.m., the yen was stronger against the yen than at the end of the previous week, at $1 = ¥155.55–155.56. Against the euro, it stood at €1 = ¥180.80–180.84.