The yen traded in the upper ¥153 range to the dollar in Tokyo's foreign exchange market at the start of the week. Many market participants said expectations that the Bank of Japan would accelerate rate hikes, along with expectations of further rate hikes by the U.S. Federal Reserve, pushed up the currency.
In trading on the morning of the 14th, the yen traded in Tokyo at ¥153.68–69 to the dollar, against a backdrop of interest-rate outlooks in Japan and the United States. The yen was 53 sen stronger than at the previous Friday's close. The euro was trading at ¥178.06–08, up approximately ¥0.91 against the yen. Market participants said yen buying was dominant, supported by persistent expectations that the Bank of Japan will accelerate rate hikes.
Moves driven by expectations of further rate hikes by the U.S. Federal Reserve were also said to be strong. With policy decisions by the central banks of Japan and the United States due later in the week, some market participants said the outlook was becoming increasingly uncertain. These factors are believed to be influencing movements in the foreign exchange market.