Yen rises on speculation of BOJ policy shift

Wage, price data seen as opening door for change to yield curve control

On the Tokyo foreign exchange market, the yen hit the level of 139 per dollar on July 12. (Photo by Kento Awashima)

AKIRA INUJIMA, Nikkei staff writer

July 12, 2023 00:58 JST

Updated on July 12, 2023 11:21 JST

TOKYO -- Speculation is mounting that the Bank of Japan will adjust its ultraloose monetary policy as soon as this month in response to recent economic data, driving the yen to its strongest level against the dollar in about a month.

The Japanese currency appreciated to below 140 against the greenback at one point on Wednesday, strengthening by more than 4 against the dollar over the past week. Bond yields also have climbed, with the benchmark 10-year Japanese government bond touching 0.465% for the first time since April on Monday and hovering around 0.45% Tuesday.