The yen rose sharply in the foreign exchange market on the morning of the 8th, briefly climbing to the low ¥153 range to the dollar and reaching its highest level in seven months. The move was driven by expectations that the Bank of Japan will accelerate the pace of rate hikes.
In the Tokyo foreign exchange market on the morning of the 8th, the yen briefly strengthened to the low ¥153 range to the dollar, reaching its highest level in about seven months.
Following comments from Japanese and U.S. officials, expectations grew that the Bank of Japan would accelerate the pace of rate hikes, intensifying yen buying and dollar selling. Some market participants also believe that overseas investors unwound their yen-selling and dollar-buying positions.
Some market participants said the yen could strengthen to around ¥150 to the dollar.
At a press conference after a Cabinet meeting, Finance Minister Katayama Satsuki (片山さつき) emphasized that the policy for responding to coordinated intervention had not changed at all since the implementation of coordinated intervention by Japan and the United States. She said Japan would work with the U.S. Treasury to maintain orderly foreign exchange markets.