On the 3rd, the yen briefly rose to around ¥156.30 per dollar, reaching its strongest level in about one month. Expectations for a BOJ rate hike and comments at the G20 meeting were behind the move.
In the foreign exchange market on the 3rd, the yen briefly rose to around ¥156.30 per dollar, reaching its highest level in about one month since 7 August. Expectations that the BOJ will accelerate the pace of rate hikes have become the market's focus.
Comments by BOJ Policy Board member Takada Hajime (高田創), including that "a nimble response is necessary" and that "successive rate hikes are possible," along with Governor Ueda Kazuo (植田和男)'s comment that the Board would "continue discussions at policy meetings," made an additional rate hike at the next meeting appear more likely.
Reports that U.S. Treasury Secretary Scott Bessent met with Governor Ueda at the G20 and was said to have strongly supported monetary policy measures to correct the yen's weakness also reportedly encouraged yen buying.
In the Tokyo market, reports said the BOJ was likely to raise rates by 0.25% at its meeting this month. After the dollar was briefly bought back to around ¥157.30 per dollar, the market also became volatile, with the yen at times pushed back to the high-¥155 range. Concerns about intervention and speculation that authorities had conducted a rate check emerged, and levels near ¥160 per dollar are being watched as a line of defense.