Dollar-yen in the Tokyo market held in the upper ¥157 range. The dollar was at ¥157.67-68 at noon, supported by buying from real-demand accounts and other factors.
Dollar-yen traded in the upper ¥157 range in the Tokyo foreign exchange market on the morning of the 28th, with buying by real-demand accounts reportedly coming in. Higher crude oil prices in after-hours trading and rising US long-term interest rates were also cited as factors supporting the market. At noon, the dollar was at ¥157.67-68, down 41 sen against the yen from ¥158.08-09 at 5 p.m. the previous Friday.
In overseas markets the previous Friday, remarks by Finance Minister Katayama (片山財務相) prompted selling, and the dollar briefly fell below ¥157. It subsequently held firm against further declines as US long-term interest rates remained high, trading from the middle of the session onward in a range around ¥157.00-30. Late in the session, it moved back up to the ¥157.20 range.
Buying to cover short positions led trading in early Tokyo hours, briefly lifting the dollar into the ¥157.60 range. Reports then suggested that real-demand accounts were buying heavily ahead of month-end, and the dollar recovered to the ¥157.80 range around the fixing. It came under some selling on the way to noon, but the upside was viewed as limited.
The euro recovered against the yen after 9 a.m. and was slightly higher against the dollar. At noon, it was at ¥179.57-58 per euro and $1.1388-89 against the dollar.