Dollar Hits 8-Month Highs above 152.50 Yen in Tokyo

Tokyo, Oct. 8 (Jiji Press)–The dollar surged to eight-month highs above 152.50 yen in Tokyo trading Wednesday, buoyed by receding speculation for an early interest rate hike in Japan. The yen remained under selling for the dollar, as market players expect a wider interest rate gap between Japan and the United States after the ruling Liberal Democratic Party elected Sanae Takaichi, who advocates aggressive fiscal spending and loose monetary policy, as president. The greenback stood at 152.56-57 yen at 5 p.m., up from 150.62-62 yen at the same time Tuesday, as the so-called Takaichi trade, marked by higher stock prices and a weaker yen, continued. The broad-based TOPIX index scored an all-time closing high of 3,235.66, up 7.75 points, or 0.24 pct, from Tuesday. Meanwhile, the Nikkei 225 stock average closed down 215.89 points, or 0.45 pct, at 47,734.99 as profit-taking hit semiconductor names. Many market participants believe that if Takaichi becomes prime minister as widely expected, she is seen tolerating a further weakening of the Japanese currency, said an official of a foreign exchange margin trading service company. Another reason for the yen-bearish mood is a spreading view that the government is unlikely to step into the currency market to stem the yen’s decline anytime soon, given that talks to decide the framework of a coalition government are expected to drag on, a brokerage house official said. END [Copyright The Jiji Press, Ltd.]