Japanese shares closed the week lower, even as the yen strengthened to its strongest week in nearly three months, fueled by expectations that the interest rate gap between Japan and the US will narrow.
The Nikkei 225 dropped 0.53%, or 202.10 points, finishing at 37,667.41.
The yen hit 153.625 on Friday, marking a 2.3% weekly gain, its largest since April-May. The currency rose for a fourth consecutive session on Thursday, recovering from 38-year lows as investors adjusted their positions ahead of next week’s Bank of Japan meeting.
On Thursday, the yen climbed to a near three-month high of 151.945 per dollar, up from 38-year lows of 161.96 earlier in the month.
This sharp rebound follows suspected Tokyo interventions in early July, leading traders to unwind profitable carry trades.
Source : MT Newswires
