USD/JPY softened in European trading, falling below the intraday low. The weakness in crude oil prices, a loss of momentum in long-term US Treasury yields and remarks by the US president aimed at restraining yen depreciation were cited as contributing factors.
USD/JPY came under pressure in European trading, falling from around ¥158 and slipping below the intraday low. While developments in equity markets and interest rates supported the yen’s weakness, attention was also focused on factors that could curb yen depreciation.
The trading ranges so far were ¥157.89–¥158.29 for USD/JPY, ¥179.92–¥180.29 for EUR/JPY and 1.1387–1.1394 for EUR/USD.
European market movements were affected by the loss of momentum in crude oil prices and the decline in long-term US Treasury yields, with periods of stronger dollar selling observed.
The president’s remarks aimed at restraining yen depreciation also created a yen-buying tone, leaving the yen crosses similarly weaker.