Tokyo Yen Rises to Lower 158 Range Amid Receding Fed Rate-Hike Expectations

The Tokyo yen rose to the lower 158 range against the dollar on the morning of September 2nd.

As of 10:00 a.m., the dollar traded at 158.14-15 yen, down 23 sen from the previous day's close.

This shift was largely driven by receding expectations for Federal Reserve rate hikes, which prompted investors to focus on the narrowing U.S.-Japan interest rate differential.

The stronger Tokyo metropolitan area consumer price index for September, released by Japan's Ministry of Internal Affairs and Communications, also contributed to yen buying.