Yen Jumps as Traders Bet on BOJ Rate Hike, Dollar Weakens
The yen surged more than 2% against the US dollar on Thursday as traders ramped up bets on a Bank of Japan interest rate hike.
Analysts pointed to BOJ data showing no official intervention behind the currency's strong gains on Wednesday, contrary to speculation that Japanese officials had intervened to shore up the yen after its recent rally began to fade.
BOJ board member Hajime Takata said the central bank should conduct interest rate hikes nimbly to counter intensifying inflationary pressures, rather than adhere to a fixed semiannual pace anticipated by markets.
The dollar added to losses as traders pared bets on a September rate hike after comments from Federal Reserve Governor Christopher Waller, who said if upcoming data confirms that inflation pressures are cooling off, he is inclined to argue in favor of keeping interest rates steady at the U.S. central bank's next policy meeting.
The Japanese yen was last up 2.08% at 155.47 per dollar, approaching the 155.21 level that was the yen high after the July intervention.