The yen remained firm in the foreign exchange market, influenced by the direction of fiscal and monetary policy. In the Tokyo market on the morning of the 9th, the yen rose to around ¥157.77 per dollar, reportedly against a backdrop of falling US interest rates.
In the Tokyo market on the morning of the 9th, the yen temporarily reached around ¥157.77 per dollar, strengthening by about 40 sen from 5 p.m. the previous day. Falling US interest rates were reportedly behind yen buying and dollar selling.
Developments in the foreign exchange market, together with the Bank of Japan’s continued rate-hike path, are seen as factors preventing further yen depreciation. There have also been indications that the Takaichi Sanae (高市 早苗) administration is reducing its fiscal policy emphasis, and views have emerged that the move away from reflation is affecting the yen exchange rate.