Dollar Hits 24-Year Highs above 140.40 Yen in Tokyo

Economy

Tokyo, Sept. 2 (Jiji Press)--The dollar briefly topped 140.40 yen to hit the highest levels since August 1998 in Tokyo trading Friday, reflecting growing expectations for a wider interest rate gap between the United States and Japan.

At 5 p.m., the dollar stood at 140.24-24 yen, up from 139.27-28 yen at the same time Thursday.

Speculation that the U.S. Federal Reserve will continue raising interest rates for an extended period grew after Fed officials, including Chairman Jerome Powell, made remarks prioritizing monetary tightening to tame inflation over efforts to shore up the economy.

With the Bank of Japan seen keeping its ultraeasy monetary policy in place for the time being, expectations for the interest rate gap between Japan and the United States to widen further grew and prompted market players to sell yen for dollars.

On Friday, Japan's Chief Cabinet Secretary Hirokazu Matsuno and Finance Minister Shunichi Suzuki made remarks warning against a rapid fall of the yen. Their remarks, however, "had only a limited impact" on the currency market, an official at a bank-affiliated securities firm said.

[Copyright The Jiji Press, Ltd.]

Jiji Press