In the morning London market, the yen strengthened against the dollar, trading in the low ¥157 range. The dollar-selling and yen-buying movement was seen against the backdrop of the Bank of Japan asking financial institutions to provide a rate check.
In the London foreign exchange market on the morning of the 21st, the yen strengthened against the dollar, trading in the low ¥157 range. As of 10 a.m., it stood at around ¥157.20–¥157.30 per dollar, stronger than its level at 4 p.m. on the previous business day. During overseas trading hours, the yen at one point rose sharply from the upper ¥157 range to the upper ¥156 range.
Market participants said the Bank of Japan was believed to have conducted a “rate check,” asking financial institutions about current market levels. Some market participants believe the Bank of Japan sought to curb speculative yen-selling ahead of Japan’s Golden Week holiday period.
During London trading hours, dollar-buying to cover short positions prevailed, with the dollar falling from around ¥157.00 before trading in a narrow range. Some market participants said concerns about a possible expansion of the trade deficit going forward, in light of the renewed rise in oil prices and other factors, could lead to yen-selling.
The euro was around the ¥180 level, while the euro/dollar rate was around $1.1475–$1.1485 per euro. The pound was trading at around $1.3384–$1.3394 per pound.