In New York trading on the 12th, dollar-yen rose into the ¥160 range before selling and buying on concerns over further yen weakness crossed. In Tokyo trading, dollar buying against a backdrop of rising long-term yields is expected to contend with selling on intervention concerns ahead of remarks by Williams, president of the Federal Reserve Bank of New York.
In New York foreign exchange trading on the 12th, dollar-yen rose as high as ¥160.05 on higher US 10-year Treasury yields before falling back to ¥159.33, but recovered toward the close once the selling subsided. Euro-dollar fell to $1.1046 as WTI crude oil futures and US long-term yields rose, while euro-yen fell to ¥176.26.
In today's Tokyo foreign exchange market, dollar-yen is expected to see a tug-of-war between dollar buying against a backdrop of rising US long-term yields and concerns over remarks by the Bank of Japan and Finance Ministry warning against yen weakness, as well as possible intervention to sell dollars and buy yen, while the market assesses remarks by Williams, president of the Federal Reserve Bank of New York.
The previous day, Finance Vice-Minister Mimura (三村) made remarks warning against further yen weakness and suggested, recalling the summer episode, the possibility of coordinated intervention by Japan and the United States. The market continues to assess the possibility of intervention while keeping in mind the previous move around ¥160.