Yen buying and dollar selling intensified in the New York market, with the yen strengthening against the dollar to the ¥158.20 range at one point. Expectations of an acceleration in the Bank of Japan’s pace of rate hikes and a narrowing of the interest-rate differential were cited as background, while speculation also emerged that a rate check had been conducted.
In the New York foreign exchange market on the 2nd, yen buying and dollar selling intensified, and the yen rapidly strengthened to the ¥158.20 range against the dollar at one point. The yen also strengthened to the ¥157 range at one point in the Tokyo market.
Dollar selling was reportedly driven by waning expectations for US rate hikes and a slowdown in the rise in long-term interest rates. Market speculation has also spread that a “rate check,” in which financial institutions are contacted to inquire about exchange-rate levels, was conducted and discussed as a precedent.
Some observers say the move was influenced by US Treasury Secretary Scott Bessent’s effective call for the Bank of Japan to correct the yen’s weakness at the G20 Finance Ministers and Central Bank Governors Meeting. Market expectations for an additional BOJ rate hike have strengthened.
In the US crude oil futures market on the 2nd, WTI rose into the $92 range and closed at $91.01, up 0.9% from the previous day. In the New York stock market, the Dow closed up $295.07 and the Nasdaq up 118.06 points.