Yen Soars as Markets Scale Back US Rate Hike Expectations

The Japanese yen has reached a two-week high against major and secondary currencies in Asian trading on Wednesday, extending its gains against the US dollar for a second consecutive session.

The yen's gains came as the US dollar's rally against a basket of currencies stalled, with markets scaling back expectations for a Federal Reserve interest rate hike in October.

Concerns over possible Japanese intervention in the foreign exchange market also intensified after Finance Minister Satsuki Katayama warned about yen weakness and reaffirmed continued coordination with the United States.

The USD/JPY pair fell nearly 0.6% to ¥156.38, its lowest level since September 18, from the day's opening level of ¥157.28.