In the Tokyo market on the morning of the 13th, the yen traded in the upper ¥159 range near its highs, as rising long-term US Treasury yields and intervention concerns pulled in opposite directions. As of noon, it stood at ¥159.90–91, with the upside capped just below ¥160.
In the Tokyo foreign exchange market on the morning of the 13th, the yen traded near its highs in the upper ¥159 range per dollar. The range at noon was ¥159.90–91, compared with ¥159.71–72 at 5 p.m. the previous day, indicating a stronger dollar and weaker yen. Dollar buying was supported by rising long-term US Treasury yields, while caution over yen-buying intervention by the government and the Bank of Japan capped the upside, leaving the market without a clear direction.
In overseas markets the previous day, the yen weakened to the ¥159.50 range before briefly moving into the 160s during US trading, then falling about 70 sen shortly afterward. Expectations for US rate hikes strengthened on an upside surprise in October CPI and hawkish comments by Federal Reserve officials, making yen selling and dollar buying dominant in anticipation of a widening interest-rate differential between Japan and the US.
In Tokyo trading, the market opened in the ¥159.80 range early in the morning and rose to the ¥159.90 range after the fixing, but selling on rallies emerged toward noon, limiting the upside. Market participants pointed to persistently high US interest rates and intervention concerns around ¥160, making the battle around ¥160 a focal point.
The backdrop includes a shift in views on US monetary policy, with stronger expectations for rate hikes following the upside surprise in October CPI driving a stronger dollar and weaker yen. At the same time, the 160 range is also near past highs, and some market participants say intervention concerns will curb yen selling.