In the foreign exchange market on the evening of the 7th, the yen temporarily rose to the ¥154-per-dollar range. This was its highest level in roughly six months, since late February, and the market is focusing on a potential reversal of the yen's weakening trend, which previous interventions had kept distorted. Market participants are watching developments closely.
In the foreign exchange market on the evening of the 7th, the yen temporarily rose to the ¥154-per-dollar range. This brought it to a level last seen in late February and fueled widespread speculation that it could break through the ¥155 barrier formed by recent interventions.
Market participants have expressed the view that the yen's weakening trend is entering a corrective phase. Comments from people at US financial institutions and other market participants were cited, with the view that the yen's direction will be linked to whether further intervention takes place and to US interest-rate trends.
According to Yamada Shusuke (山田修輔), Chief Japan FX and Rates Strategist at BofA Securities, the yen is currently in a phase of correcting excessive weakness, and the yen's movements on the 7th were part of that trend. The view was also expressed that the yen could continue to strengthen against currencies other than the dollar.