The yen rose to the ¥153 range against the dollar, nearing its year-to-date high. During Asian trading on the 8th, it fell to ¥153.53 per dollar, bringing its gain for the month to about 4%.
The yen surged to the ¥153 range against the dollar, nearing its year-to-date high. In trading during Asian hours on the 8th, dollar-yen fell to ¥153.53, putting the yen's gain for the month at about 4%.
There is no single explanation for the yen's strength. The prevailing view is that a combination of factors has been at work, including expectations of a faster pace of BOJ tightening, the repatriation of Japanese funds, the unwinding of yen carry trades and political pressure from the United States.
The ¥152 range is being cited as the next target. The break below the ¥155 level has opened the possibility of further declines, with the dollar-yen exchange rate expected to test around ¥152.
Ahead of next week's US inflation data and the BOJ meeting, expectations are growing in the market that the BOJ could raise interest rates by 0.25 percentage points.