In the Tokyo morning session, dollar-yen fell to around ¥156.08 before rebounding to around ¥157.06. Yen strength is expected to intensify again following comments from Economic Minister Kiuchi.
In the Tokyo morning session, dollar-yen temporarily fell to around ¥156.08 as risk-off yen buying continued. It then reversed course following reported comments from Economic Minister Kiuchi (城内), recovering to around ¥157.06. Some market participants attributed the move to weak global equity-market trends and concerns over AI investment.
Economic Minister Kiuchi (城内) said the conditions for declaring an end to deflation had not been met, signaling a cautious stance on additional Bank of Japan rate hikes. Cross-yen pairs rebounded from their declines, with euro-yen rising to around ¥176.05, pound-yen to around ¥210.35 and Australian dollar-yen to around ¥110.16.
The market moves remained limited to the Tokyo morning session, and further volatility is expected depending on additional comments and the BOJ's actions.