TOKYO, Sept. 11 (Xinhua)-- Japanese yen on Wednesday afternoon surged to its highest level against the U.S. dollar this year in the Tokyo foreign exchange market, briefly reaching 140.72 yen to the dollar.

This marked a significant appreciation of nearly 3 yen compared to the previous day's closing rate, setting a new high for the year by surpassing the previous peak of 141.68 yen to the dollar set on Aug. 5.

The yen's rapid rise was largely attributed to comments made by Junko Nakagawa, a board member of the Bank of Japan (BOJ), during an economic and financial forum earlier in the day.

Nakagawa suggested that the BOJ might adjust its monetary easing policy if the economy and inflation evolve as expected, a statement that was interpreted by the market as a sign of a potential rate hike later this year.

The hawkish signal aligns with the tone set by BOJ Governor Kazuo Ueda, who has maintained a more aggressive stance on tightening policy compared to his predecessors.

The anticipation of a narrowing interest rate gap between Japan and the United States spurred investors to buy yen and sell dollars, pushing the yen higher.

However, Yasunari Ueno, chief economist at Mizuho Securities, offered a different perspective, suggesting that Nakagawa's remarks were not particularly surprising.

He pointed out that the market's reaction may have been influenced more by external factors, such as the televised debate among U.S. presidential candidates earlier in the day, which added to market volatility. Enditem

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