Dollar-Yen Plunges to New Low on BOJ Rate Hike Speculation

The dollar-yen pair plummeted to its lowest level in months as investors speculated that the Bank of Japan may accelerate the pace of interest rate hikes. Policy Board member Hajime Takata's remarks suggesting consecutive rate increases fueled market speculation, causing the pair to briefly fall below 158 yen. The August 26 low of 158.88 yen was broken, and near-term stop-loss orders triggered a sharp decline.

Market participants noted that wariness over currency intervention by the Japanese government and the BOJ is mounting, capping upside momentum as dollar-yen approached the 160-yen level. The August 20 low of 158.03 yen served as perceived support in the lower-158 range, preventing further decline.