The yen rose broadly in the foreign exchange market on the 22nd, briefly reaching ¥156.69 against the dollar. Global equity declines and expectations of domestic capital inflows supported yen appreciation.
The yen rose broadly against major currencies in the foreign exchange market on the 22nd, as intensifying risk aversion increased upward pressure on the currency. Against a backdrop of global equity market declines, expectations of domestic capital inflows also appear to have supported yen appreciation.
The yen briefly rose to ¥156.69 against the dollar, its highest level since late September. It gained as much as 1.1% against the euro, reaching levels near a one-year high, and also rose approximately 0.5% against the Swiss franc.
Market participants said that capital flows and risk aversion supported the yen's broad-based gains. Domestic capital flows remain a factor of interest and a potential complication for the outlook.