Forex
Yen Surges Against Dollar as BOJ Rate Hike Looms
The Japanese yen surged over 3 yen against the U.S. dollar in New York trading on Thursday, as expectations of a Bank of Japan rate hike in mid-September prompted buying.
Market participants believe that the Japanese government did not intervene in the foreign exchange market during trading in New York, as speculation that the interest rate differential between Japan and the United States will narrow soon.
The yen's rise has raised concerns about its impact on the Japanese economy. According to Atsushi Mimura, top currency diplomat, 'I'm neither reassured nor satisfied' with the yen's current levels in the currency market.