The Japanese yen surged to its highest level against the dollar in a month, driven by speculation that the Bank of Japan is set to raise interest rates, as global markets remained jittery.
Key facts
- The yen rose more than 1.7% against the dollar on Thursday.
- The move lifted the yen to 155.85, its highest level against the dollar in a month.
- The jump followed a 0.9% move the previous day.
- The gains came amid speculation the Bank of Japan is set to raise interest rates.
- Global markets remained jittery, according to the Guardian.
The Japanese yen has soared by more than 1.7% against the dollar amid speculation that the Bank of Japan is preparing to raise interest rates, according to the Guardian.
The latest jump on Thursday lifted the yen to its highest level against the dollar in a month, at 155.85. The move built on gains from the previous day, when the currency rose 0.9%.
The back-to-back increases point to a shift in market expectations around the Bank of Japan’s policy direction, with traders positioning ahead of a possible rate rise.
The Guardian reported that the currency’s advance came against a backdrop of continued unease across global markets, which have remained jittery.
A stronger yen can have wide-ranging effects, influencing everything from the cost of Japanese exports to the returns on investments tied to the currency, making shifts of this size closely watched by investors.
Why it matters
Movements in the yen ripple across global markets, affecting trade, investment flows and the cost of goods. A widely anticipated Bank of Japan rate rise would mark a notable change in one of the world's major economies, with knock-on effects for currencies and markets worldwide.
Frequently asked questions
How much did the yen rise against the dollar?
The yen rose more than 1.7% against the dollar on Thursday, following a 0.9% move the previous day, according to the Guardian.
What level did the yen reach?
The move lifted the yen to 155.85 against the dollar, its highest level in a month.
Why did the yen strengthen?
The gains came amid speculation that the Bank of Japan is set to raise interest rates, according to the Guardian.