Dollar-yen rose into the mid-¥159 range as of noon on 28 August. Buying was supported by long-term US interest rates remaining elevated, while views emerged that further gains would be limited amid caution over intervention by the government and the Bank of Japan.
In the Tokyo market on the morning of the 28th, the dollar firmed from its level in after-hours trading into the mid-¥159 range. The rate was ¥159.43–44 as of noon, representing a modest gain of about 08 sen. During European hours, the dollar rose to around ¥159.50 before falling back to around ¥159.20 under selling on gains into US hours.
The market reaction to the August Tokyo core CPI, released at 8:30 a.m. Japan time, was muted, and the dollar again traded in the low ¥159 range toward noon.
There was speculation that buying was driven by US interest rates remaining elevated, while major securities firms and others said that caution over intervention by the government and the Bank of Japan made it difficult to pursue further gains. Some market participants said a clear break above ¥159.50 was unlikely. In the afternoon, a stronger wait-and-see mood is expected ahead of Chair Warsh's Federal Reserve speech.
The euro was firm against the yen and weak against the dollar. As of noon, the euro stood at ¥185.75–76 and at 1.1650–1650 dollars against the dollar.