The yen weakened in foreign exchange markets, falling back to the ¥158-per-dollar range. Expectations of an additional rate hike in the United States and speculation that the outlook for the Bank of Japan’s rate-hike pace may change are supporting yen selling.
The yen’s decline has gathered pace in foreign exchange markets, with the yen falling back to the ¥158-per-dollar range. As dollar buying accelerates, multiple factors are weighing on the yen.
One factor is growing expectations of an additional rate hike in the United States, which is increasing demand for the dollar. Many market participants view this as supporting yen weakness.
In Japan, meanwhile, changes in the outlook for the Bank of Japan’s rate-hike pace have been cited as a factor behind yen selling. Some market participants have also said that uncertainty is increasing.