The dollar/yen rate rose to ¥158.60 in Tokyo trading on the morning of the 20th as buying driven by the widening Japan-US interest-rate differential emerged. It subsequently returned to the ¥158.50 range.
The dollar/yen rate briefly rose to ¥158.60 in morning trading in Tokyo, surpassing the previous day's high. The market maintained dollar buying focused on the widening Japan-US interest-rate differential, after which the rate returned to the ¥158.50 range.
US interest-rate movements affected the yen, with the US 10-year Treasury yield rising to 5.14% while Japan's 10-year government bond yield fell to 2.90%. The widening Japan-US interest-rate differential is believed to have prompted yen selling and dollar buying. Rising crude oil prices were also cited as a factor supporting the dollar.
In the previous day's New York session, the dollar/yen rate also edged higher, briefly rising to ¥158.45 in response to movements in US long-term interest rates. The NAHB Housing Market Index fell below market expectations, but the market reaction was limited.
Among cross-yen rates, euro/yen traded between ¥176.64 and ¥177.82, while euro/dollar remained in the 1.1208–1.1215 range. The previous weekend's high of ¥177.97 is being watched as near-term resistance for euro/yen.