Amid growing expectations of an additional US rate hike, the yen briefly broke above ¥160 to the dollar. The market is closely watching developments ahead of a difficult policy decision by the Bank of Japan.
Against a backdrop of expectations for further US rate hikes, yen selling progressed, and the yen briefly traded above ¥160 in the foreign exchange market.
This move strengthened expectations that an additional rate hike by the US Federal Reserve was imminent, and views spread in the market that the yen could weaken further.
Meanwhile, voices have emerged that the Bank of Japan will face a difficult policy decision going forward, taking into account price and wage trends and the impact of monetary policy.