The Nikkei began the day unchanged, but moved steadily higher in morning trade as the Yen softened somewhat against the USD, reversing yesterday’s strength and allowing the Nikkei to recover some of yesterday’s losses.
The afternoon saw the Nikkei make another push higher after currency officials in Japan spoke out against the strength of the Yen against the USD.
“If there are excessively sharp movements, we will have to take action,” Vice Finance Minister for International Affairs Masatsugu Asakawa told reporters at the ministry’s headquarters.
The commentary sent the Yen weaker still and led to a gain of 0.90% for the Nikkei.
Traders now have their attention focused on the latest FOMC meeting minutes, which will be released after the close of the U.S. trading session. If traders find that the Federal Reserve members were hawkish at the July meeting it could send the USD soaring higher on increased chances for a September U.S. interest rate hike.