As market doubts about the US-led AI boom in demand continued to simmer, momentum behind dollar buying weakened in the foreign exchange market and yen buying progressed. On the 23rd, the yen briefly strengthened to the low ¥156 range in the Tokyo market, but it has generally continued to stagnate around ¥158.
Amid mounting market doubts over overheating in US-led demand for artificial intelligence, hedge funds and others were seen reducing their long dollar positions and buying back yen in the foreign exchange market. Some views hold that there has been no major change in the supply-and-demand structure supporting yen weakness.
The yen had traded almost flat around ¥158 to the dollar since late September, but briefly moved toward the low ¥156 range in the Tokyo market on the 23rd. Some have pointed out that yen appreciation could pause in the future depending on changes in market sentiment.