Dollar-yen briefly plunged to the low ¥158 range, amid growing speculation that the BOJ's rate-hike pace would be approximately once every 3 months. A September rate hike and the possibility of another hike in December were the subject of market discussion.
In the foreign exchange market in the early hours of 3 September, dollar-yen briefly plunged to the low ¥158 range. The market indicated a view that the pace of the BOJ's policy changes would slow to approximately once every 3 months.
On the same day, US stocks edged higher, with the S&P 500 up 0.46% and the Nasdaq Composite up 0.45%, indicating a risk-on move.
Looking ahead, market speculation is growing that the BOJ will raise rates in September and again in December. Attention is focused on movements in the interest-rate differential, which supports the exchange rate.
Some expect pressure for yen depreciation to gradually weaken, while the outlook calls for dollar-yen to move under the influence of US monetary policy.