The yen rebounded from its low in the New York foreign exchange market as expectations of a Bank of Japan rate hike strengthened. A 0.25% hike is widely expected to be virtually certain at this week's monetary policy meeting, with the policy rate expected to be raised to 1.25%.
The yen temporarily rebounded from its low in the New York foreign exchange market. The dollar-yen pair rose on expectations of a Federal Reserve rate hike before yen buying advanced, pushing it back to 154.56.
The Bank of Japan is highly likely to decide on a 0.25% rate hike at this week's monetary policy meeting, and the policy rate is expected to rise to 1.25%, according to reports. This would put it at its highest level in 31 years, since 1995.
In addition to the dollar-yen move, major currency pairs also declined, with the euro-yen pair falling from a high of 178.68 to 178.40 and the pound-yen pair from 208.77 to 208.33.