Yen Surges on BOJ Hints and Strong US Jobs Report
The yen surged to its highest level in a month against the US dollar after Bank of Japan Governor Kazuo Ueda hinted at larger-than-expected rate hikes. The currency climbed above 155 per dollar for the second straight day, with some analysts predicting further gains if it breaks below this level.
Investment banks say that if the yen strengthens past 155 per dollar, it will trigger additional selling of dollar positions in the market and accelerate the yen's advance. Strategists at JPMorgan Chase estimate bearish yen positions total 16 trillion to 17 trillion yen.
The BOJ comments followed a stronger-than-expected US jobs report for August, which saw nonfarm payrolls rise by 162,000 from the previous month. This exceeded market expectations and marked a sharp pickup from July's 21,000 increase.