The yen rebounded in New York trading on the 31st, ending at ¥159.70–¥159.80 to the dollar. Yen buying and dollar selling prevailed after U.S. Treasury Secretary Scott Bessent indicated that he expected the Japanese government and the Bank of Japan to take action to correct the yen's weakness.
The yen rebounded in the New York foreign exchange market on the 31st, ending 20 sen higher against the dollar than at the end of the previous week. It traded at around ¥159.70–¥159.80 to the dollar, as the market appeared to take note of the Bank of Japan's and the Japanese government's stance on correcting the yen's weakness. The yen's high was ¥159.60 and its low was ¥159.89.
In an interview with CNBC, U.S. Treasury Secretary Scott Bessent said, "I believe the Japanese government and the Bank of Japan will take measures that will lead to a stronger yen." He also said he expected Governor Ueda to make "the right decision" on monetary policy with the support of Prime Minister Takaichi. The market viewed these remarks as a factor behind yen buying and dollar selling.
Uncertainty over the situation in the Middle East and the United States resurfaced, sending U.S. crude futures sharply higher on the 31st. This also prompted yen selling and dollar buying driven by awareness of the U.S.-Japan interest-rate differential, while the long-term interest rate rose to around 4.76%.
The yen fell back against the euro, while the euro edged higher against the dollar. The euro strengthened and the dollar weakened at one point, and the market as a whole continued to trade near its highs.