The Japanese currency reached 139.96 to the dollar, its strongest level since July 2023, as traders assessed the US central bank’s plans for interest rates, with the debate centering on whether it will cut them by 25 or 50 basis points.
The yen has risen after hitting a four-decade low of 161.95 yen to the dollar in July, prompting authorities to intervene in currency markets. The Bank of Japan’s decision to start raising interest rates that have been low for years also helped boost the currency.
The Bank of Japan is due to announce its monetary policy on Friday, with most analysts expecting it to keep interest rates on hold after an unexpected rise in interest rates at the end of July sparked market turmoil.
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