New York, Sept. 18 (Jiji Press)–The yen rebounded past 157 per dollar in New York on Friday, amid speculation that the Bank of Japan may have conducted a “rate check” with financial institutions before potential yen-buying market intervention. As of 5 p.m., the dollar stood at 156.83-93 yen, still up by 0.91 yen from the same time the previous day. In London earlier on Friday, the Japanese currency had plunged to near 158 per dollar, amid waning expectations of a further interest rate hike by the BOJ. On the same day, the Japanese central bank decided to raise the policy interest rate, but two members of its Policy Board voted against the rate hike, prompting yen selling against the dollar. A BOJ rate check is considered a move that could precede currency market intervention. However, a U.S. foreign exchange analyst said that Japan’s sole intervention without U.S. cooperation would be nothing more than a paper tiger. Earlier this month, the yen surged from near 160 per dollar to levels past 153, after U.S. Treasury Secretary Scott Bessent stepped up pressure on the BOJ to raise interest rates. Nevertheless, the yen’s declining trend has been returning due to speculation that the U.S. Federal Reserve could raise interest rates faster than the BOJ. END [Copyright The Jiji Press, Ltd.]
