Japan’s currency strengthened to the 152-yen level against the dollar, gaining on speculation the Bank of Japan may normalize its monetary policy sooner rather than later.
The yen advanced to its highest level in about two months during Thursday foreign-exchange trading in Tokyo.
Market sources say investors who had been selling the yen are moving to buy it back. Talk about the BOJ’s monetary policy has increased after recent remarks by senior officials in the government and the ruling parties about the central bank raising interest rates.
The stronger yen is pushing the Nikkei 225 lower, with the benchmark index losing more than 1,200 points, or 3 percent, at one stage on Thursday.
Export-linked shares such as autos and those related to semiconductors have been sold.