In the Tokyo foreign exchange market on the 28th, the dollar edged higher against the yen and traded in the mid-¥159 range. Higher US long-term interest rates and position-adjustment buying ahead of the weekend supported the market.
In the Tokyo foreign exchange market on the afternoon of the 28th, the dollar had risen to around ¥159.50, up about 15 sen against the yen from ¥159.35-36 at 5 p.m. the previous day. The market was broadly sidelined ahead of the Jackson Hole meeting.
During European hours, the dollar traded mainly in the ¥159.30 range, rising to around ¥159.50 while participants watched movements in US long-term interest rates, before falling back to the ¥159.20 range. It later recovered to the ¥159.30-40 range. Once Tokyo trading began, there was no imbalance in supply and demand, and trading by real-money participants was limited. The dollar edged higher after the Tokyo fixing was announced and briefly rose to around ¥159.55 in the afternoon.
The government and the Bank of Japan are scheduled to release intervention results for the period from July 30 to August 26 at 7 p.m. Japanese and US authorities conducted coordinated intervention on July 31. While some market participants said activity by European traders and higher US long-term interest rates could lead to dollar buying, others noted that concerns about intervention would intensify as the dollar approached the ¥160 threshold.
The euro was flat against the yen and slightly lower against the dollar. At 5 p.m., the euro was around ¥185.75-76 and $1.1646-46.