Yen Rallies as Markets React to Hawkish Comments

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

The yen had reached a 40-year low of 163.98 per dollar before the intervention, but has since surrendered some of its gains.

According to Chris Scicluna, head of economic research at Daiwa Capital Markets Europe, 'It's a big chunky move and it would be a convenient time for the US or Japan, to at least conduct a rate check, after the Bank of Japan comments this morning.'