Yen buying accelerated in the Tokyo market, with the yen temporarily surging to the ¥157.60 level. Views are spreading that the Bank of Japan may accelerate the pace of rate hikes and conduct a rate check.
Yen buying and dollar selling accelerated in the Tokyo foreign exchange market, with the yen temporarily strengthening to ¥157.60 to the dollar. The move is reportedly attributable to developments in the interest-rate differential between Japan and the United States, as well as views that the Bank of Japan will accelerate the pace of rate hikes.
In the New York market that day, dollar selling spread, with the yen reportedly reaching the ¥158.20 level temporarily. Market participants are also said to be increasingly of the view that authorities conducted a rate check to inquire about prevailing foreign-exchange levels.
Bank of Japan Policy Board member Takata Hajime (高田創) said that it was necessary to respond flexibly to future rate hikes, strengthening market expectations of an additional rate hike at the September monetary policy meeting.
The market is also focused on the fact that U.S. Treasury Secretary Bessent met with the Bank of Japan at the G20 Finance Ministers and Central Bank Governors Meeting and effectively called for a rate hike to correct the yen’s weakness.
In the crude oil market, WTI October futures temporarily rose to the $92 level. The closing price was $91.01, up 0.9% from the previous day. In the New York stock market, the Dow Jones Industrial Average ended up 295.07 points from the previous day, marking its first rise in 4 trading sessions.