Yen Rises Amid Speculation of BOJ Rate Hike

The Japanese yen experienced a significant surge against the US dollar in New York trading, rising by over 3 yen amid speculation that the Bank of Japan (BOJ) may raise interest rates at its mid-September policy meeting.

The BOJ Governor Kazuo Ueda has signaled his readiness to lift rates depending on economic and price conditions. This move was attributed to traders noting no signs of government intervention, but rather a shift in speculation about narrowing interest rate differentials between Japan and the US.

The dollar traded at 155.75-85 yen by 5 p.m. New York time, down 2.89 yen from Wednesday. In Tokyo earlier that day, the dollar stood at 157.03-06 yen.