The yen surged in Tokyo trading on 3 September, briefly reaching the ¥156-per-dollar range. It then traded in the ¥157 range, while the yen swung sharply to the ¥182-per-euro range. Expectations of a faster pace of BOJ rate hikes and remarks by the U.S. Treasury secretary heightened market attention.
In Tokyo trading on 3 September, the yen was bought back sharply, briefly rising to around ¥156.30 per dollar. As of 5 p.m., most trading had ended at ¥157.03–06, up ¥2.66 from the previous day, while the yen swung sharply to ¥182.22–26 per euro.
The move was attributed to growing expectations that the Bank of Japan would accelerate the pace of rate hikes. Remarks by BOJ Policy Board member Takata Hajime (高田創), along with indications that the Bank could raise rates at its 17–18 September monetary policy meeting, were seen as factors prompting yen buying. Remarks perceived as pressure from U.S. Treasury Secretary Scott Bessent and speculation about a rate check were also cited as downside factors.
In the previous day's U.S. market, the rise in long-term interest rates had paused and dollar selling led trading. Once Tokyo trading began, however, the yen's appreciation accelerated. The outlook for the Japan-U.S. interest-rate differential and policy developments again became the market's focus, and exchange-rate volatility remained elevated.
The yen's appreciation and concerns about higher interest rates spilled over into the equity market. In Tokyo stock trading on 3 September, the Nikkei average fell ¥111 from the previous day to close at ¥64,214, marking its fourth consecutive decline. An executive at a major securities firm said the market was unlikely to establish a clear direction before the mid-September policy meeting.