Yen Falls to One-Month Low Against Dollar Amid Fresh Rate Hike Speculation

The yen continued its decline against the dollar on the 28th, briefly falling to 160.20 per dollar for the first time in a month.

This marks the end of the upward momentum from the coordinated yen-buying intervention by Japan and the United States in late July, which had pushed the pair back into the 150 range.

Federal Reserve Chair Kevin Warsh's speech at Jackson Hole, Wyoming, reignited speculation about future rate hikes to combat inflation, widening the interest rate differential between Japan and the U.S. and intensifying yen-selling, dollar-buying flows.

The U.S. 10-year Treasury yield rose to the 4.72% range, providing further upward momentum for dollar-yen, while euro-dollar slid to $1.1585.