TOKYO - The yen strengthened to around 152 against the dollar on September 8, reaching its strongest level in about six months after gaining nearly 7 yen in roughly a week as investors focused on prospects for a narrowing interest-rate gap between Japan and the United States.
Buying of the Japanese currency remained dominant in the foreign exchange market, pushing the yen briefly into the 152 range against the dollar.
The currency has appreciated by nearly 7 yen over roughly one week, reaching a level not seen since mid-February.
The move came as expectations for further interest-rate increases by the U.S. Federal Reserve eased somewhat, while speculation grew that the Bank of Japan could accelerate its rate hikes. The shifting outlook has increased market attention on the possibility that the interest-rate differential between Japan and the United States will narrow.
Finance Minister Satsuki Katayama renewed a warning against speculative currency moves at a news conference on September 8.
"Our policy stance has not changed at all since Japan and the United States carried out coordinated intervention," Katayama said.
Katayama emphasized that the government would continue working to maintain orderly foreign exchange markets, again signaling its readiness to respond to excessive speculative movements.
Source: TBS
