The yen strengthened broadly, with yen buying showing no sign of easing ahead of next week's BoJ meeting. The yen strengthened against the dollar to around ¥152.88, while other major cross rates also remained at yen-strength levels.
During the Tokyo morning session, yen buying strengthened the yen against the dollar to around ¥152.88, taking it to its strongest level since February this year. A 0.25% rate hike at next week's BoJ monetary policy meeting is widely considered almost certain, while pressure from the U.S. Treasury Secretary also raises the possibility that a single rate hike will not be enough. The yen's strength has also been influenced by the reduced appeal of yen carry trades against a backdrop of recently rising yen interest rates.
The yen strengthened to around ¥177.85 against the euro, ¥207.09 against the pound and ¥110.25 against the Australian dollar, with all three cross rates hitting new year-to-date lows.
The move was observed during the Tokyo morning session and can be viewed as continued yen buying ahead of next week's BoJ meeting.