The Japanese yen strengthened toward 156 per dollar on Tuesday, rebounding from two-week lows amid growing expectations that the Bank of Japan will continue raising interest rates this year.
On Monday, BOJ Governor Kazuo Ueda reiterated that the central bank will adjust rates as the economy and prices evolve in line with its forecasts.
His remarks highlighted increasing confidence that Japan is moving beyond its long-standing deflationary period toward a more sustainable, growth-driven economy.
Ueda also projected that the economy would sustain a virtuous cycle, with moderate, simultaneous increases in wages and prices.
Meanwhile, investors kept an eye on the potential for currency intervention, as business leaders urged the government to address the yen’s weakness and support a stronger currency.
AloJapan.com