Yen Hits Seven-Month High as Oil Prices Soar Above $100
The Japanese yen has reached its highest level against the US dollar in seven months, trading at around 153.32 per dollar on Wednesday.
This gain of nearly 4% since the start of September is attributed to expectations that the Bank of Japan could accelerate the pace of monetary policy tightening and pressure from the United States to support the yen.
The rise in oil prices, with Brent crude futures breaking above $100 a barrel for the first time since late July, has also contributed to the yen's strength.
Market participants expect the Bank of Japan to raise interest rates by 25 basis points at its September 17-18 meeting, and investors will focus on comments from Governor Kazuo Ueda for indications of how aggressively the central bank intends to tighten monetary policy going forward.