Yen Hits One-Month High as Rate Hike Expectations Surge
The Japanese yen strengthened by over 1% against the US dollar on Thursday and hit a one-month high of 156.34 yen per dollar.
The currency's move has sparked speculation about possible new intervention by Japanese authorities, who have been actively managing the exchange rate in recent weeks.
Earlier this month, Japan spent a record 15.4 trillion yen (approximately $98 billion) to strengthen its national currency, and the US also confirmed participation in coordinated actions at the end of July using its foreign currency reserves to buy yen.
Some analysts link the yen's strengthening primarily to rising expectations of a Bank of Japan rate hike in September, with market participants often viewing an exchange rate above 160 yen per dollar as a threshold for intervention.