The yen surged to the lower ¥158 range against the US dollar. As expectations of an additional BOJ rate hike strengthen, the yen's upward trend is also affecting long-term interest rates.
The yen surged in the foreign exchange market, rising to nearly ¥158 per US dollar. It moved below the ¥160 range, the lowest level reached after the yen-buying intervention at the end of July.
Views are spreading that expectations of an additional BOJ rate hike are strengthening, and the yen was seen appreciating further. Some also pointed to the view that long-term interest rates would be pushed down by the yen's appreciation.
Regarding developments on the US side, Treasury Secretary Bessent indicated on social media that he had discussed the normalization of Japan's monetary policy during talks disclosed on 30 August.