In the Tokyo foreign exchange market on the 9th, dollar-yen remained firm and recovered to the lower half of the ¥158 range. Yen buying temporarily intensified in response to remarks by Prime Minister Takaichi Sanae (高市 早苗), but buying back the dollar later prevailed, and dollar-yen rose to ¥158.25 in the afternoon.
In the Tokyo market on the 9th, the yen recovered to the lower half of the ¥158 range against the dollar despite struggling to gain ground, while actual-demand flows roiled the market ahead of three-day holidays in both Japan and the United States. Yen buying temporarily prevailed in the morning following remarks by Prime Minister Takaichi Sanae (高市 早苗), sending dollar-yen down to ¥157.76.
After selling subsided, buying back the dollar prevailed. The dollar was bought back against a backdrop of lower US 10-year Treasury yields, and dollar-yen rose to ¥158.25 in the afternoon, following the strength of the cross-yen pairs. Euro-yen also climbed to ¥177.71.
At noon, dollar-yen was trading at ¥158.07, euro-yen at ¥177.48 and euro-dollar near $1.1228. The market showed sharply contrasting effects from position adjustments ahead of the three-day holidays in Japan and the United States and the impact of confidence in the yen following the prime minister's remarks.
The focus going forward is whether dollar-yen can hold the ¥158 level, with market expectations that sentiment ahead of the three-day holidays in Japan and the United States will continue to have an impact.