Asian currencies rose on Tuesday as the Japanese yen gained 1.1% against the U.S. dollar, reaching its highest level since Feb. 23, 2026. The yen’s advance helped pull the dollar index down 0.3% to 98.92.
The euro climbed to $1.1600, while the South Korean won traded near 1,346.98 per dollar after touching 1,334.70, its strongest level since Oct. 2024. Global investors bought more than 800 billion won (about $598 million) in semiconductor firms Samsung Electronics and SK Hynix.
Traders are pricing a quarter‑point (25 basis‑point) increase by the Bank of Japan at its Sept. 18 policy meeting, a move driven by aggressive rate‑betting activity.
Japan’s Ministry of Finance reported a record $87.8 billion drop in foreign securities holdings at the end of August, linked to recent currency‑support operations. Tokyo spent a record 15.4 trillion yen (roughly $98.6 billion) on yen‑support measures through Aug. 26, in coordination with U.S. authorities.
U.S. markets were closed for the Labor Day holiday, limiting global trading volume. The Federal Reserve faces a roughly 57% probability of a rate hike at its Sept. 15‑16 meeting, while the European Central Bank is widely expected to raise rates on Thursday.
