The yen has appreciated in the foreign exchange market, with the dollar rising to the ¥153 range. As this is a level not seen for about six months, market attention is focused on the impact of intervention and future movements.
The yen has appreciated in the foreign exchange market, with the dollar reaching the ¥153 range. This is a level not seen for approximately six months, since February of the previous year, and yen-buying and dollar-selling have been driving the market.
Government and Bank of Japan foreign exchange intervention conducted from April to May this year, as well as coordinated intervention in July, had prevented the market from breaking through this level. Views have emerged that the latest moves have brought the market to a point where it has exceeded the ¥155 level regarded as a barrier.
While market participants say expectations of an acceleration in Bank of Japan rate hikes are prompting yen buying, some also point out that speculative investors have intensified yen buying to cover their positions amid heightened vigilance over intervention, amplifying the market's movements.