The Japanese yen surged to a seven-month high on Monday, reaching its strongest level since February. The currency gained as much as 1.4% to ¥154.06 against the dollar, surpassing the peak reached after a coordinated intervention between Japan and the United States.
This sharp reversal in sentiment was driven by growing bets on Bank of Japan rate hikes and expectations of faster policy tightening. The currency was also lifted by predictions that Japanese investors could repatriate funds.
Finance Minister Satsuki Katayama stated that Japan's stance on currencies has not shifted since the joint intervention with US counterparts. He noted that authorities will work to maintain orderly markets.