The yen-to-dollar exchange rate, which once surged to the 164-yen range per dollar, has been falling day after day.

In the Tokyo foreign exchange market this morning (September 8), the yen-dollar exchange rate temporarily dropped to the 152-yen range per dollar, marking the highest level for the yen's value in about seven months since mid-February.

At around 11:24 a.m. on this day, the exchange rate stood at 152.88 yen per dollar.

While the yen-dollar exchange rate was trading at around 155.5 yen per dollar at approximately 5 p.m. the previous day, it soon descended into the 154-yen range and further declined to the 152-yen range today.

This is a level that was not reached even during the Japanese foreign exchange authorities' market interventions in April to May and July.

Speculation is growing in the market that both the U.S. and Japanese governments will actively move to correct the weak yen, following remarks earlier this month by U.S. Treasury Secretary Scott Bessent at the Group of 20 (G20) finance ministers' meeting, where he stated that the yen was undervalued and seemingly pressured Japan to raise its benchmark interest rate.

Citing expectations that the Bank of Japan will implement consecutive interest rate hikes at its monetary policy meeting scheduled for September 17 to 18 and subsequent meetings within the year, the Nihon Keizai Shimbun (Nikkei) reported that buying pressure on the yen is currently prevailing.

In addition, analyses suggest that dollar-buying sentiment has receded as the dollar-preference phenomenon, driven by tensions in the Middle East, has begun to stall.

(Photo: Yonhap News)