Dependence on Foreign Exchange Volatility and Customer Trading Volume

「The yen subsequently strengthened temporarily as a result of yen-buying and dollar-selling intervention by the government and the Bank of Japan. It then returned to a trend of dollar strength and yen weakness against the backdrop of persistently high crude oil prices and growing expectations of U.S. interest-rate hikes, ending the period at around ¥162 to the dollar.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen temporarily strengthened to the ¥139 range per dollar due to the announcement of US reciprocal tariffs and concerns over US-China trade friction. It subsequently remained on a dollar-strengthening and yen-weakening trend against the backdrop of progress in US-China tariff negotiations, concerns over fiscal expansion in Japan and safe-haven dollar buying amid worsening tensions in the Middle East, ending the period in the ¥158 range.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen strengthened to the ¥139 range per dollar due to the announcement of US reciprocal tariffs and concerns over US-China trade friction. It subsequently moved toward dollar strength and yen weakness against the backdrop of reduced concerns over pressure from the United States to correct the yen's weakness, progress in US-China tariff negotiations and heightened tensions in the Middle East. After the agreement in Japan-US tariff negotiations, the Bank of Japan's decision to forgo an additional rate hike and the FRB's rate cut in September, the market generally moved sideways, ending the period in the ¥147 range.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen weakened to the ¥161 range per dollar, the weakest level in approximately 37 and a half years, due to reduced expectations of FRB rate cuts and the Bank of Japan's decision to maintain its current monetary policy. The yen then strengthened temporarily to the mid-¥139 range due to intervention by the government and the Bank of Japan to buy yen and sell dollars, a Bank of Japan rate hike, concerns over a US recession and expectations of FRB rate cuts. It subsequently returned to a weakening trend amid reduced expectations of an early Bank of Japan rate hike, the outcome of the US presidential election and higher US long-term interest rates, but turned stronger due to an additional Bank of Japan rate hike and concerns over a recession caused by US tariff policies, ending the period in the ¥149 range.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen weakened to the ¥161 range per dollar, the weakest level in approximately 37 and a half years, due to reduced expectations of FRB rate cuts and the Bank of Japan's decision to maintain its current monetary policy. However, the yen subsequently strengthened due to intervention by the government and the Bank of Japan to buy yen and sell dollars, a Bank of Japan rate hike, concerns over a US recession and expectations of FRB rate cuts, ending the period in the mid-¥143 range.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen temporarily strengthened due to concerns over intervention by the government and the Bank of Japan to buy yen and sell dollars, expectations of an early end to the Bank of Japan's negative interest-rate policy, and lower US interest rates amid expectations of early FRB rate cuts. However, the yen generally remained on a weakening trend amid expectations that the Japan-US interest-rate differential would remain wide, and the period ended in the mid-¥151 range per dollar after the Bank of Japan indicated in March that it would maintain accommodative financial conditions even after ending its negative interest-rate policy.」

「The yen generally remained on a weakening trend as US long-term interest rates rose, ending the period in the mid-¥149 range per dollar, its weakest level since October of the previous year.」

「In the financial instruments market relevant to our Group, the yen strengthened to the ¥130 range per dollar at the beginning of the period as the pace of increases in the US policy rate slowed. However, the yen continued to weaken amid expectations that the interest-rate differential between Japan and the United States would widen again due to differences in the direction of their monetary policies, following the new Governor of the Bank of Japan's indication that existing monetary policy would be maintained and stronger expectations that the FRB would continue raising rates based on solid US economic indicators. The period ended in the mid-¥144 range.」

「In the financial instruments market relevant to our Group, the yen continued to weaken as the interest-rate differential widened due to differences in the direction of monetary policy in Japan and the United States, reaching the ¥151 range per dollar in October 2022, the weakest yen and strongest dollar in 32 years. However, the yen strengthened amid expectations of a slower pace of FRB rate hikes, revisions to the Bank of Japan's monetary policy, and concerns over the financial system following the failure of US banks and the crisis at Credit Suisse, ending the period in the upper ¥132 range.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen continued to weaken as the interest-rate differential widened due to differences in the direction of monetary policy in Japan and the United States, reaching the ¥151 range per dollar in October 2022, the weakest yen and strongest dollar in 32 years. However, the yen temporarily strengthened to the ¥130 range amid expectations that the FRB would slow the pace of rate hikes and the Bank of Japan's decision to widen its permitted fluctuation range for long-term interest rates.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen weakened to the ¥145 range per US dollar, reaching a 24-year high for yen depreciation and dollar appreciation as the interest-rate differential widened due to differences in the direction of monetary policy in Japan and the United States. In response, the government and the Bank of Japan intervened by buying yen and selling dollars, temporarily pushing the yen up to the ¥140 range, but the yen subsequently weakened again to the ¥145 range.」

「Under these conditions, in the financial instruments market relevant to our Group, the yen weakened to the ¥137 range per US dollar as the interest-rate differential widened due to differences in the direction of monetary policy in Japan and the United States, reaching a level of yen depreciation and dollar appreciation not seen for approximately 24 years, since 1998.」

「The yen weakened from around the end of 2021 as crude oil and wheat prices surged, and weakened further from February 2022 due to additional inflationary pressure resulting from Russia's military invasion of Ukraine and interest-rate hikes as countries reviewed their monetary policies.」

「Under these conditions, in the financial instruments market relevant to our Group, there were temporary factors that could cause volatility, including discussions on US tapering, China Evergrande Group's debt problems and the discovery of the Omicron variant, but volatility overall remained moderate.」

「Under these conditions, in the foreign exchange markets relevant to our Group, there were temporary factors that could cause volatility, including the resurgence of COVID-19, discussions on US tapering and China Evergrande Group's debt problems, but volatility overall remained moderate.」

「Under these conditions, in the foreign exchange markets relevant to our Group, there were temporary factors that could cause volatility, including rising expectations for an economic recovery as COVID-19 vaccinations accelerated in European countries and the start of discussions on reducing the FOMC's bond-purchasing policy, but volatility overall remained moderate.」

「Volatility was relatively high at the beginning of the period due to the global spread of the pandemic and the prolonged US-China trade friction, but their impact gradually weakened. From July, volatility moved at a moderate level despite factors that could cause volatility, including the US presidential election, expectations for the widespread availability of vaccines and China's economic recovery.」

「Under these conditions, in the foreign exchange markets relevant to our Group, volatility was relatively high at the beginning of the period due to factors such as the global spread of the pandemic and the prolonged US-China trade friction, but the impact of the pandemic began to ease from July. The market subsequently remained directionless over the UK's EU exit and the US presidential election, and volatility moved at a moderate level. In this environment, we anticipated that the increased use of PCs and smartphones resulting from the expansion and prolongation of requests to refrain from going out and remote work would increase opportunities for FX trading, and therefore narrowed spreads on popular currency pairs and reviewed our advertising methods. As a result, foreign exchange trading volume during the first 3 quarters of the fiscal year was 3.8410 trillion currency units, up 60.3% year on year.」

「Under these conditions, in the foreign exchange markets relevant to our Group, the impact of COVID-19 on volatility had eased from the level at the end of the previous fiscal year, and the market remained directionless ahead of the UK's EU exit in October and the US presidential election in November, resulting in low volatility.」

「In the foreign exchange markets relevant to our Group, volatility remained relatively high, although lower than at the end of the previous fiscal year, due to factors such as the global COVID-19 pandemic and the prolonged US-China trade friction.」

「Although there were factors that could cause volatility, such as the UK's EU exit issue and US-China trade friction, the market generally moved within a narrow range. However, volatility increased in early January 2020 due to heightened geopolitical risk arising from tensions between the United States and Iraq and, from early February, the impact of the spread of COVID-19 on the global economy.」

「Under these conditions, in the foreign exchange markets relevant to our Group, there were factors overseas that could cause exchange-rate movements, such as US-China trade friction and the UK's EU exit issue, but their impact on the foreign exchange market as a whole was limited, and low volatility continued throughout the period.」

「Overall, low volatility continued in the foreign exchange market.」

「Under these conditions, in the foreign exchange markets relevant to our Group, the foreign exchange market gradually moved toward a stronger yen amid risk aversion caused by US-China trade friction, growing expectations of US interest-rate cuts and heightened geopolitical risk involving the United States and Iran. However, overall market price movements remained subdued, and low volatility continued.」

「Under these conditions, the foreign exchange markets relevant to our Group moved within a narrow range, despite factors that could cause volatility, including the impact of US-China trade friction on the global economy and difficulties in negotiations over the UK's exit from the EU.」

「Under these conditions, the foreign exchange markets relevant to our Group turned risk-off, and exchange-rate volatility was low. In addition, foreign exchange trading volume during the second quarter of the fiscal year was 1.7658 trillion currency units, down 14.3% year on year.」

「Under these conditions, the foreign exchange markets relevant to our Group turned risk-off due to concerns over the US-China trade war and other factors, despite the retreat in geopolitical risk surrounding North Korea following the US-North Korea summit. Exchange-rate volatility was low. As a result, foreign exchange trading volume during the first quarter of the fiscal year declined 12.9% year on year to 934.9 billion currency units.」

「Overall, the foreign exchange market moved within a narrower range than in the previous year.」

「Under these conditions, in the foreign exchange markets relevant to our Group, positive factors for the dollar, including favorable US economic indicators and the US tax reform bill, were limited, and exchange-rate volatility remained low amid uncertainty over the outlook, including concerns that low inflation would persist for an extended period.」

「Under these conditions, the foreign exchange markets relevant to our Group turned risk-off amid uncertainty over the outlook, and exchange-rate volatility remained low.」

「In the foreign exchange markets relevant to our Group, risk-off sentiment driven by concerns over political developments in the United States and Europe resulted in low exchange-rate volatility.」

「Profit and loss from foreign exchange transactions is heavily affected by changes in customer trading volume, while customer trading volume is heavily affected by exchange-rate volatility.」