Dollar-Yen Tumbles to Mid-155 Range Amid BOJ Rate Hike Speculation

The dollar-yen pair weakened in Tokyo foreign exchange trading on the 7th, falling to 155.55 yen per dollar by 5:00 p.m., down roughly 25 sen from its earlier level of 155.80 yen.

This decline stemmed from speculation over accelerated Bank of Japan rate hikes and pressure from U.S. Treasury Secretary Scott Bessent to correct yen weakness, which has been a structural factor encouraging yen buying and dollar selling.

Market participants remain convinced that the BOJ's monetary policy normalization will proceed faster than expected, following dovish-to-hawkish signals from Governor Kazuo Ueda and board member Hajime Takata the previous week.