Yen Jumps to Highest Level Since July Intervention

The Japanese yen made significant gains against the US dollar on Wednesday, rising to as high as 155.21 per dollar after having retraced approximately half of the increases made following a rare joint intervention by the U.S. and Japan at the end of July.

The yen had reached a 40-year low of 163.98 per dollar before the intervention, but on Wednesday it was last up 0.94% at 158.67 per dollar.

Analysts pointed to hawkish comments from Bank of Japan (BOJ) board member Hajime Takata and BOJ Governor Kazuo Ueda as possible drivers behind the move, with both officials suggesting that interest rate hikes may be necessary to counter intensifying inflationary pressures.