The yen widens its gains to the highest level in four weeks thanks to the hawkish Bank of Japan.

- The U.S. dollar is retreating amid a slowdown in U.S. Treasury yields.

- Takahta calls for accelerating the pace of raising Japanese interest rates to counter pressures.

- Probabilities of raising Japanese interest rates in September approach full pricing.

The Japanese yen rose in the Asian market on Thursday against a basket of major and minor currencies, widening its gains for the second day in a row against the U.S. dollar and recording its highest level in four weeks, with increased buying of the yen following more hawkish comments from some Bank of Japan officials.

The U.S. dollar fell as the dollar index on Thursday by more than 0.2%, continuing its losses for the second session in a row and moving away from its highest level in three weeks, reflecting the continued decline of the U.S. currency against a basket of global currencies.

The Bank of Japan said Governor Kazuo Ueda on Tuesday, on the sidelines of the G20 meeting in the United States, that the bank would discuss raising interest rates, including at the September meeting, focusing on whether inflation risks are escalating.

Expectations about the yen’s performance: we expect here at “FX News Tody” that the yen will continue to move in the positive area against the U.S. dollar during today’s trades, with the possibility of recording new higher levels in several weeks, especially if the current decline in long‑term U.S. Treasury yields continues.

Wheat futures in Chicago fell on Wednesday after retreating from their highest levels for contracts that had been recorded during overnight trading, as well as from their highest levels in three and a half years reached in the previous session, with traders taking profits and assessing the latest developments affecting grain exports from the Black Sea region.