The Japanese yen gained strength against the US dollar on Thursday following remarks by US Federal Reserve Chairman Kevin Warsh. In New York trading, the yen climbed to the upper-157-yen range after Warsh described economic activity in the United States as "clearly pointing in the right direction."
Investors reacted by selling the dollar, interpreting Warsh's comments as a signal that the Fed is not in a rush to raise interest rates. Prior to his news conference, the yen was trading in the lower 158-yen range.
However, in early Tokyo trading on Thursday, investors bought back the dollar. This shift came as Warsh reassured markets that the Fed remains prepared to raise rates further if necessary.