In the New York market on the 25th, dollar-yen fell from ¥157.77 to ¥156.94, closing at ¥157.27. On 28 September, the tug-of-war is expected to continue between dollar strength and yen depreciation pressure stemming from the Japan-US interest-rate differential, and vigilance over measures to prevent further yen depreciation.
In the New York foreign exchange market on the 25th, dollar-yen fell from ¥157.77 to ¥156.94, closing at ¥157.27. Reports following a telephone call between Finance Minister Katayama and US Treasury Secretary Bessent said that the two sides shared a recognition of the need to correct the yen's undervaluation, prompting yen-buying to prevail.
Dollar-yen is expected to show limited upside on 28 September, with concerns about government and BOJ intervention rising after pressure to correct yen depreciation emerged in both Japan and the US.
Secretary Bessent's reported comment that he had “discussed with Finance Minister Katayama the view that a strong yen is desirable” was also taken seriously, making official intervention concerns a factor affecting market sentiment. At the same time, the US 10-year Treasury yield remains high, keeping dollar-buying pressure rooted in the Japan-US interest-rate differential.