The yen rebounded sharply after breaking through the ¥155-per-dollar barrier. Expectations that the BOJ will accelerate the pace of rate hikes are seen as a factor, but uncertainty over the sustainability of yen buying is also apparent.
The yen rose sharply after moving past the ¥155-per-dollar level. The market appears to have bought yen on expectations that the BOJ will accelerate the pace of rate hikes.
Reports indicate that the government has carried out large-scale yen-buying interventions at the end of April and July, and some have pointed out that substantial yen selling occurs whenever the ¥155 level approaches.
However, uncertainty remains over the path toward a shift to yen appreciation. Some also believe it is difficult to determine whether yen appreciation would persist even if the BOJ were to accelerate its potential rate-hike pace.