Yen Hits 7-Month High past 153 per Dollar amid BOJ Rate Hike Hopes

Tokyo, Sept. 8 (Jiji Press)–The yen surged to a seven-month high past 153 per dollar in Tokyo trading on Tuesday, amid speculation that the Bank of Japan could accelerate its policy interest rate hikes. At 5 p.m., the dollar stood at 153.79-80 yen, down from 155.54-55 yen at the same time on Monday. The euro was at 1.1612-1612 dollars, down from 1.1623-1623 dollars, and at 178.59-61 yen, down from 180.80-81 yen. Foreign speculative traders and others continued to unwind short positions in the yen after remarks by Japanese and U.S. officials fueled anticipation of faster rate hikes by the BOJ, market sources said. The yen briefly strengthened beyond 152.90 per dollar in the morning but retreated to around 154 per dollar in the afternoon. “(The dollar) resisted falling further after approaching its year-to-date low of around 152.10 yen,” said an official at a major Japanese bank. However, an official of a domestic securities firm said: “The yen’s weakening trend has ended for now. The psychologically important line of 150 yen (per dollar) would now be a mere passing point.” On the Tokyo Stock Exchange, the benchmark Nikkei 225 stock average lost most of the previous day’s gains, weighed down by the stronger yen and elevated oil prices. It closed at 65,269.33, down 1,130.51 points, or 1.70 pct, from Monday. END [Copyright The Jiji Press, Ltd.]