Asian Currencies Rise as Yen Surges Toward 158

Asian currencies rose against the dollar on Thursday as the yen surged toward 158 per dollar. The yen's rally has traders on high alert for possible intervention ahead of the Bank of Japan's policy meeting later this month.

The Japanese Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent have said they are prepared to intervene again without hesitation if necessary. This comes as markets raised bets on a larger rate increase for September 18, with some pricing in a 50-basis-point hike.

The yen's gains came despite DBS' doubts about the effectiveness of intervention, citing the smaller drop compared to previous interventions and the yen's performance no better than the South Korean won this week.