In the Tokyo market, USD/JPY fell as low as ¥157.79 before rebounding to the mid-¥158 range in the afternoon. The dollar strengthened amid expectations of additional US rate hikes, while factors related to official warnings against yen depreciation also affected the market.
In the Tokyo market, USD/JPY rebounded after selling of the dollar intensified toward the Tokyo fixing, pushing the pair down to ¥157.79. At times, however, the dollar's recovery was restrained by the government's warnings against yen depreciation.
In the afternoon, expectations of additional US rate hikes came back into focus, prompting a move toward higher US yields and a stronger dollar, with USD/JPY rising to ¥158.48. EUR/JPY also moved higher, reaching around ¥180.
As of 5 p.m., USD/JPY was around ¥158.20–¥158.30 and EUR/JPY around ¥180.30–¥180.40. The Nikkei average rose sharply from the previous day, closing at ¥65,513.99.
Comments from key officials and developments in monetary policy also affected the market, while attention was focused on economic indicators, including the release of Australia's unemployment rate.