The yen exchange rate temporarily rose to the mid-155 yen level, and expectations for an acceleration in the Bank of Japan interest rate hike led to stronger yen-buying and dollar-selling.

At the New York foreign exchange market on the morning of the 3rd, the yen rose sharply, reaching the mid-155 yen level to the dollar at one point. This is the highest level in a month since August 3rd. While expectations that the Bank of Japan will accelerate the pace of interest rate hikes have increased, expectations that the U.S. Federal Reserve will raise interest rates soon have diminished, leading to stronger yen-buying and dollar-selling.

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As of 9 a.m., it was 155.50 to 60 yen, a significant yen appreciation and dollar depreciation of 3.14 yen compared to 5 p.m. the previous day.

There is growing speculation in the market that the Bank of Japan will accelerate its pace of interest rate hikes from the previous rate of once every six months, and there is talk of the possibility of a significant rate hike exceeding 0.25%. On the other hand, on the 3rd, Federal Reserve Board Director Waller mentioned the possibility of supporting interest rate unchanged at the September policy meeting if inflation continues to slow down, indicating that the market is conscious of a narrowing of the Japan-U.S. interest rate differential.