Yen surges in New York amid expectations for BOJ rate hike in Sept.
NEW YORK (Kyodo) -- The Japanese yen briefly surged over 3 yen against the U.S. dollar from the previous day's level in New York trading on Thursday,
The Japanese yen experienced a brief surge over 3 yen against the U.S. dollar in New York trading on Thursday, driven by expectations of a Bank of Japan interest rate hike in mid-September, according to Kyodo. Many market observers believe the Japanese government did not intervene in the forex market during New York trading, as they speculate that the interest rate differential between Japan and the U.S. will soon narrow.
At 5 p.m. in New York, the dollar was trading at 155.75-85 yen, a decrease of 2.89 yen from the previous day, while in Tokyo, the U.S. currency was at 157.03-06 yen. This development follows U.S. Treasury Secretary Scott Bessent calling for a review of accommodative monetary conditions during a press conference after a two-day Group of 20 finance ministers and central bank governors meeting.
Though Bank of Japan chief Kazuo Ueda has indicated readiness to lift interest rates based on economic and price conditions, there is a growing belief that the Federal Reserve will maintain unchanged interest rates for a while, given the weakening inflationary pressure.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
