The Japanese yen hit a seven-month high in trading on 8 September, surging to ¥153.53 per dollar. Expectations of a Bank of Japan rate hike and the possibility of government intervention in the market were reported to be behind the move.
The yen was bought heavily in morning trading on 8 September, reaching a new seven-month high. According to reports, expectations that the Bank of Japan will continue raising interest rates this month supported the yen's appreciation.
One of the main explanations for the sharp rise is that investors are reducing their bets on continued yen weakness. It was also reported that the Bank of Japan's next monetary policy meeting is scheduled for 17 and 18 September.
The data showed that real wages rose 2.4% year on year in July, marking their strongest growth since May 2021. Second-quarter GDP growth was reported at 1.4%, exceeding the market forecast of 1.1%.
The yen's appreciation was also affected by moves taking it beyond the level at which the government intervened in the foreign exchange market at the end of July. Reports said that the Ministry of Finance had coordinated with the US Treasury to buy yen, while some viewed this as prompting a return of funds to the yen.