In the Tokyo market on the morning of the 28th, buying the dollar was predominant in USD/JPY, with trading taking place in the upper ¥158 range. Dollar buying continued against the backdrop of elevated long-term US interest rates.
In the Tokyo market on the morning of the 28th, USD/JPY rose from ¥158.34 to ¥158.92 as the dollar was bought in a rebound from the previous week's decline caused by then-US President Trump's efforts to discourage yen depreciation. The US 10-year Treasury yield remained elevated, supporting demand for the dollar.
The day's trading ranges were USD/JPY ¥158.34–¥158.92, EUR/JPY ¥180.09–¥180.76, and EUR/USD $1.1369–$1.1382.
Comments related to the Bank of Japan's Monetary Policy Meeting included the view that a gradual adjustment in the degree of monetary easing would be desirable, the possibility of rate cuts below the estimated range for the neutral rate, a change in the stance toward achieving sustained 2% underlying inflation, and the possibility that the pace of rate hikes could accelerate more quickly than the market expects. In addition, the corporate services price index rose 3.7% year on year in August.