The yen strengthened against the dollar in Tokyo trading on Monday the 7th, reaching 155.88-91 per dollar by 10:00 a.m., a 39-41 sen gain from the previous weekend. Expectations that the Bank of Japan (BOJ) may accelerate interest-rate increases have supported yen buying and dollar selling by encouraging positions for a narrower Japan-U.S. interest-rate differential. Trading was subdued because the United States observed the Labor Day holiday on the 7th and all U.S. markets were closed. An FX broker said fewer overseas participants were active, while a Japanese bank foreign exchange official described dollar buying as dominant around the pre-10:00 a.m. mid-price fixing. Japanese importers also bought dollars and sold yen, but their market impact appeared limited. The yen rose 54 sen against the euro to 181.11-13 per euro, while the euro slipped $0.0005 against the dollar to $1.1617-18. Japanese market participants drove trading as speculation over the timing and pace of further BOJ rate hikes continued to support the yen.