The yen rose to the ¥153-per-dollar range, reaching its strongest level in six months, while selling spread across export stocks and the Nikkei Average fell back. Markets are watching the BOJ's policy stance and the prospect of further intervention.
The yen rose to the ¥153-per-dollar range in the Tokyo market, reaching its strongest level against the dollar in about six months. Behind the move are expectations that the BOJ will accelerate the pace of interest-rate hikes and concerns that Japanese and US authorities may intervene again.
Concerns about weaker earnings at export-related companies spread, and the Nikkei Average extended its decline after opening. Automakers and electronics companies led the downturn, while semiconductor-related stocks also came under selling pressure.
A 0.25-point rate hike at the BOJ's September meeting is priced in, while the revised figure for real GDP in the April-June quarter showed annualized growth of 1.4% from the previous quarter, and real wages in July rose 2.4% year on year, adding to the positive indicators.
Currency intervention is said to have totaled a record ¥15.4 trillion, while outstanding holdings of foreign securities had fallen sharply as of the end of August. Some analysts have also pointed to the possibility that the yen's appreciation could accelerate the unwinding of yen carry trades.