In foreign exchange markets on the 3rd, the yen's exchange rate against the dollar briefly rose to the mid-¥155 range as expectations of an early BOJ rate hike emerged. The previous day's closing level was in the upper ¥159 range, and the yen strengthened rapidly.
In foreign exchange markets on the 3rd, the yen strengthened against the dollar, briefly reaching the mid-¥155 range per dollar. Expectations of an early BOJ rate hike reportedly rose against the backdrop of remarks by the US Treasury Secretary concerning the yen's weakness.
In Tokyo trading the previous day, the yen finished at ¥159.69–¥159.71 to the dollar as of 5 p.m., with the day's gain amounting to approximately ¥4. The move made the market turmoil apparent.
Following remarks by US Treasury Secretary Scott Bessent, the view that the BOJ would signal an early rate hike reportedly gained traction, and investors focused on the possibility of a rate hike at the BOJ's Monetary Policy Meeting scheduled for the 17th and 18th.
In the Tokyo bond market, the yield on the newly issued 10-year Japanese government bond, the benchmark for long-term interest rates, temporarily fell by 0.050 percentage points to 2.96%. Bond prices rose, and the yield closed at 2.965%.