The yen rose to the lower ¥156 range per dollar in Tokyo's foreign exchange market on the morning of the 23rd. Yen buying prevailed amid awareness of a narrowing U.S.-Japan interest-rate differential following declines in U.S. AI-related stocks.
As of 10:00 a.m. on the 23rd, the dollar-yen pair was trading at ¥156.46–¥156.47, while the euro-yen pair stood at ¥175.55–¥175.56. The yen's movement in the U.S.-Japan market and its level against the dollar are shown together.
The decline in U.S. AI-related stocks was cited as a factor behind the move, while lower long-term U.S. Treasury yields encouraged yen buying. This fueled broader trading based on awareness of a narrowing U.S.-Japan interest-rate differential.
On the previous day, the dollar-yen pair had moved in the lower ¥158 range. Long-term U.S. Treasury yields remained in the 5% range, supporting dollar buying, while concerns about delayed Bank of Japan monetary easing and expectations of additional rate hikes were reported as factors supporting yen buying.
With the Bank of Japan's monetary policy meeting scheduled for next week, the market is increasingly focused on gauging the pace of monetary policy normalization. The direction of the yen may be influenced by developments in AI stocks and movements in U.S. interest rates.