Yen falls to 148 range vs. dollar in Tokyo, lowest in 10 months

Widening gap between Japanese and U.S. interest rates expected

The yen is being sold on the view that the gap between Japanese and U.S. interest rates will remain wide even if the Bank of Japan reviews its negative interest rate policy.

Nikkei staff writers

September 20, 2023 17:22 JST

Updated on September 20, 2023 18:52 JST

TOKYO -- The yen dropped against the dollar in the Tokyo foreign exchange market on Wednesday, temporarily hitting a 10-month low in the 148 range, the lowest level since November 2022.

Ahead of the Federal Open Market Committee's meeting on Tuesday and Wednesday, there have been persistent expectations of a prolonged tightening of monetary policy by the U.S. Federal Reserve. The yen is being sold and the dollar is being bought as the gap between Japanese and U.S. interest rates persists.