The yen briefly hit a 34-year low near the 152 line against the U.S. dollar Wednesday in Tokyo on renewed expectations the Bank of Japan will maintain its accommodative stance even after raising interest rates for the first time in 17 years.

The yen fell to around 151.97 per dollar, its lowest level since 1990 after Bank of Japan board member Naoki Tamura said short-term interest rates would remain near zero for the time being, despite the central bank ending negative interest rates last week.

"Mr. Tamura was considered one of the more hawkish members among BOJ policymakers, but his comments suggested that he is not as eager as expected to hike rates," said Takuya Kanda, senior researcher at the Gaitame.com Research Institute.

However, the Japanese currency regained some ground later in the day after Finance Minister Shunichi Suzuki vowed to respond "resolutely" to excessive weakness in the yen, leaving investors wary of possible intervention by authorities.

The last time Japan stepped into the market was in October 2022, when it bought the yen against the dollar to defend its currency, which had fallen to 151.94.

"Given there is a precedent and the fall to 34-year lows, it was inevitable for the market to be cautious about a possible intervention," said Kanda, noting that the minister appeared to have elevated his warning over the yen's decline.

At 3 p.m., the dollar fetched 151.75-78 yen compared with 151.50-60 yen in New York and 151.32-34 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.0826-0827 and 164.28-33 yen against $1.0825-0835 and 164.10-20 yen in New York, and $1.0841-0843 and 164.05-09 yen in Tokyo late Tuesday afternoon.

Stocks started higher and extended gains throughout the day as the yen's depreciation boosted export-related issues, and investors scooped up shares to secure dividend rights before the end of the fiscal year, analysts said.

The 225-issue Nikkei Stock Average ended up 364.70 points, or 0.90 percent, from Tuesday at 40,762.73. The broader Topix index finished 18.48 points, or 0.66 percent, higher at 2,799.28.

On the top-tier Prime Market, gainers were led by real estate, miscellaneous product and insurance shares.

==Kyodo

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