In Tokyo afternoon trading on the 30th, dollar-yen moved around the ¥157.10 level, with the momentum behind yen buying pausing and the pair remaining firm. Major currencies continued to weaken against the dollar amid elevated U.S. long-term interest rates.
In Tokyo foreign-exchange trading on the afternoon of the 30th, dollar-yen moved around ¥157.10 per dollar. Although concerns over coordinated Japan-U.S. intervention remain strong, yen buying temporarily subsided and the pair continued to trade firmly.
The trading range was ¥156.37 to ¥157.45, somewhat wider than in the previous day’s European session. U.S. long-term interest rates remained high, while major currencies such as the euro and pound weakened against the dollar. Euro-yen traded between ¥177.34 and ¥178.55, and euro-dollar between $1.1329 and $1.1343.
In Tokyo trading on the previous day, the 29th, the yen weakened and the dollar strengthened to ¥157.37–¥157.39 per dollar as of 5 p.m., compared with the previous day. Expectations of additional Federal Reserve rate hikes strengthened against the backdrop of U.S. inflation concerns, and yen selling and dollar buying prevailed amid focus on the Japan-U.S. interest-rate differential.
Market participants remain alert to possible foreign-exchange intervention by the government and the Bank of Japan. The pause in yen buying during trading on the 30th appears to reflect the view that elevated U.S. interest rates will support the dollar on the downside even as intervention concerns persist.