In the Tokyo market on the morning of the 8th, the yen strengthened to as high as ¥152 per dollar. The move was reportedly driven by expectations of a faster pace of Bank of Japan rate hikes and coordinated policy between Japan and the United States.
In the Tokyo market on the morning of the 8th, the yen strengthened to the upper ¥152 range per dollar, reaching its strongest level in about six months. Some market participants said the yen's depreciation phase may have reached a turning point.
In the London market the previous day, the yen was bought on expectations of easing tensions in the Middle East and other factors, surging to the lower ¥154 range. After breaking through the ¥154 range, some said the yen could continue to strengthen even after intervention by the Bank of Japan.
The latest yen appreciation was driven by moves by Japan and the United States to coordinate efforts to curb yen depreciation, as well as expectations that the Bank of Japan would accelerate the pace of rate hikes. The yen also strengthened against the euro, with the euro trading in the ¥177 range.
Market participants pointed to the rapid pace of the yen's appreciation and said that the unwinding of yen-buying positions was accelerating the move.