NEW YORK - The Japanese yen briefly surged over 3 yen against the U.S. dollar from the previous day's level in New York trading on Thursday, as expectations that the Bank of Japan will raise interest rates in mid-September prompted buying.
Many market participants said they believe that the Japanese government did not intervene in the foreign exchange market during trading in New York, as speculation that the interest rate differential between Japan and the United States will narrow soon.
At 5 p.m. in New York, the dollar fetched 155.75-85 yen, down 2.89 yen from Wednesday, while the U.S. currency traded at 157.03-06 yen at 5 p.m. Thursday in Tokyo.
The latest development came as U.S. Treasury Secretary Scott Bessent called for a review of accommodative monetary conditions during a press conference following a two-day meeting of the Group of 20 finance ministers and central bank governors through Tuesday.
While BOJ chief Kazuo Ueda has voiced readiness to lift interest rates in consideration of economic and price conditions, there is a growing view that the Federal Reserve will leave interest rates unchanged for a while as inflationary pressure weakens.
