Yen buying and dollar selling continued in the foreign exchange market, with the yen rising to the upper ¥152 range per dollar in the Tokyo market. Against a backdrop including expectations that the BOJ will accelerate the pace of rate hikes, some market participants said the move evoked the period of yen strength that followed intervention.
Yen buying and dollar selling have spread across the global foreign exchange market. In the Tokyo market on the 8th, the yen firmed to the upper ¥152 range per dollar, gaining more than ¥7 in one week.
The move has been driven by factors including expectations that the BOJ will accelerate the pace of rate hikes, with market participants unwinding yen-selling and dollar-buying positions that had built up.
Some market participants said the move resembled the periods in 2022 and 2024 when the yen surged from its lows, while others said it evoked the levels of yen strength seen after intervention.
The yen is also expected to attract buying in the Tokyo market on the 9th, with attention focused on developments and further updates.