USD/JPY Plummets as Yen Buying Continues
The USD/JPY exchange rate saw significant fluctuations throughout the week, influenced by various market and economic factors. The pair opened at 160.11 and was pushed below 160 due to yen buying, which continued throughout the week.
A series of meetings between Treasury Secretary Scott Bessent and Japanese authorities, including Finance Minister Satsuki Katayama and BOJ Governor Kazuo Ueda, weighed on the pair. Bessent's comment that he was confident in the steps Japan would take to strengthen the yen also contributed to the decline.
The 10y JGB yield reaching 3% briefly caused the USD/JPY to recover above 160 on September 1. However, BOJ policy board member Hajime Takata's reference to future rate hikes sent the pair sharply lower to around 158 during US trading on September 2.
The yen strengthened across the board this week, with the dollar softening as expectations of further Fed rate hikes receded.