In Tokyo trading, dollar-yen stalled in the low ¥157 range. Higher oil prices supported the dollar, while continued caution over coordinated Japan-US intervention and remarks by Finance Minister Katayama (片山) also influenced market movements.
In Tokyo afternoon trading on the 29th, dollar-yen traded around ¥157 to the dollar, broadly unchanged from late the previous day. While elevated oil prices and expectations of an early US rate hike supported the dollar, coordinated efforts by Japan and the US to correct yen weakness capped the upside, leaving the pair range-bound throughout the day.
In the morning, Finance Minister Katayama Satsuki (片山さつき) said that the yen's undervaluation was a problem, and the dollar at one point fell to around ¥157.20. It later moved toward the mid-¥157 range, while a cautious stance of waiting to assess the Bank of Japan Tankan survey and key US data spread through the market. A strategist at SMBC Nikko Securities said the market would seek direction while treating ¥158–¥159 as the upper limit until coordinated intervention became a reality, even if the yen weakened further.
The euro weakened against both the dollar and the yen. Market participants believe higher oil prices are likely to worsen Japan's terms of trade and fuel yen-selling pressure, while close communication between Japanese and US finance authorities is also helping restrain speculative yen selling. Trading is likely to remain directionless for some time ahead of the Bank of Japan Tankan survey and US employment-related data.