- The yen rose more than 1% against the U.S. dollar, touching 156.15 per dollar, its strongest level since Aug. 3.
- Japan spent a record ¥15.4 trillion supporting the yen between July 30 and Aug. 26, and the U.S. participated in the late-July coordinated yen-buying effort.
- Hawkish comments from BOJ officials lifted expectations for a September rate hike, with the next policy decision scheduled for Sept. 18.
- A stronger yen and higher Japanese rates raise pressure on global carry trades and Japanese investors' large U.S. Treasury holdings.
Quotes
“neither satisfied nor reassured”
“But I do not think [the Ministry of Finance] has done this kind of small stealth intervention in recent history. So it is probably just a reaction to BOJ Governor Ueda's comment cementing the high likelihood of a BOJ rate hike in September”
“nimbly”