In New York trading on the 21st, the yen was moving in the low ¥157s per dollar. With no narrowing of the Japan-US interest-rate differential expected, selling of the yen continued.
After trading in Tokyo on the morning of the 21st, the yen was trading in the low ¥157s per dollar in New York. The previous Friday's closing rate was in the high ¥156s, and the yen was once again under selling pressure.
Market participants reported that the Bank of Japan had conducted a rate check on the 18th, contacting financial institutions to check exchange-rate levels as a preliminary step toward foreign-exchange intervention. This has heightened concerns about intervention.
With expectations for a narrowing of the Japan-US interest-rate differential weak, the prevailing view is that the momentum for buying back the yen remains limited. This is seen as the backdrop to the yen's continued weakness.
Recent trading has shown the yen remaining in the ¥157 range as concerns about intervention have intensified.