Yen Surges Toward 158 as BOJ Hike Bets Shift to Larger Increase
Asian currencies strengthened against the dollar on Thursday as the Japanese yen surged toward 158 per dollar, putting traders on high alert for possible intervention ahead of the Bank of Japan's policy meeting later this month.
The yen's pair fell 0.6% to 157.81 after rising 1.2% during New York trading on Wednesday and reaching an intraday peak of 157.95 in Asia, extending a 0.9% overnight gain.
Market bets for a larger rate increase at the BOJ's September 18 meeting have shifted, with some now pricing a 50-basis-point hike, compared to around 90% for a 25-basis-point hike earlier in the week.
BOJ board member Hajime Takata said Wednesday that a 25-basis-point hike was not necessarily set in stone and that back-to-back increases remained possible.