In the Sydney market on the 28th, the yen edged down to the low ¥159 range against the US dollar. The Australian dollar rose to the high ¥114 range against the yen, while other major currencies showed mixed movements.
In the Sydney foreign exchange market on the morning of the 28th, the yen edged down to the low ¥159 range against the US dollar. Indicative rates as of 8:30 a.m. local time were ¥159.39–¥159.43 per US dollar, shifting toward a weaker yen and stronger dollar from ¥159.26–¥159.28 at the same time the previous day.
The Australian dollar rose to the high ¥114 range against the yen, at ¥114.66–¥114.69 per Australian dollar, representing a 36–38 sen rise in the Australian dollar and a corresponding decline in the yen from the previous day. Against the US dollar, it rose to US$0.7194–US$0.7195.
The New Zealand dollar also edged higher against the yen to ¥94.80–¥94.90. Against the US dollar, the New Zealand dollar was slightly higher than the previous day at US$0.5950–US$0.5951. The euro was nearly flat at ¥185.71–¥185.75 against the yen and US$1.1652–US$1.1652 against the US dollar.
Overall, among the major currency pairs, the yen was soft against the US dollar, Australian dollar, New Zealand dollar and euro, while the Oceanian currencies were bought against both the yen and the US dollar. Market participants believe that the gap between US and Japanese monetary policy is putting downward pressure on the yen.
These levels are considered to be within the range seen over the past several months, and some are warning of possible Japanese foreign-exchange intervention if the yen weakens beyond ¥160. There is a view that future movements will depend on the Federal Reserve’s policy direction and the gap between US and Japanese policy.