In the Tokyo foreign exchange market as of 5 p.m. on the 20th, USD/JPY was soft at around ¥158. With the decline in long-term US Treasury yields keeping gains in check, the pair remained in the mid-¥158 range late in the session.
In the Tokyo market on the 20th, USD/JPY remained around ¥158 late in the session against a backdrop of falling long-term US Treasury yields in after-hours trading, resulting in a slight decline in the dollar and rise in the yen. As of 5 p.m., the pair stood at ¥158.08-08, down 7 sen from the previous day.
In overseas trading the previous day, crude oil futures and long-term US Treasury yields rose, lifting USD/JPY from around ¥158 to the mid-¥158 range. Buying back of AI-related US stocks also improved market sentiment, and some viewed movements in long-term US Treasury yields as supporting USD/JPY.
In early Tokyo trading, the pair held in the mid-¥158 range, and there was said to be no significant skew in actual demand around the Tokyo fixing. From around noon, it came under selling pressure against a backdrop of falling US yields, and drifted lower after 3 p.m. Gains remained capped late in the session, with the pair at times approaching ¥158.
Some market participants said selling was prevailing as a reaction to the previous day's buying in overseas trading, while others said the downside was limited by the decline in US yields. The euro was flat against both the yen and the dollar late in the session.