The yen strengthened in the foreign exchange market, briefly reaching the low ¥156 range per dollar. Expectations are growing that the BOJ will accelerate the pace of its rate hikes.
The yen continued to be bought in the foreign exchange market, briefly reaching the low ¥156 range per dollar. This was its strongest level in about a month since the coordinated intervention by Japan and the United States the previous month.
The dollar had been trading in the mid-¥159 range on the 2nd, but the yen strengthened to the ¥156.30 range shortly after 4 p.m. on the 3rd, gaining more than ¥3 against the dollar over 24 hours.
Market participants believe that the BOJ will accelerate the pace of its rate hikes, citing remarks by BOJ Policy Board member Takata (高田) on the 2nd that it was necessary to respond flexibly to rate hikes, as well as growing expectations of US rate hikes.