On the 24th, dollar-yen fell temporarily to the low ¥158 range in the Tokyo market before returning to around ¥158 in the afternoon. Buying pressure on the dollar continued on expectations of US rate hikes and a widening US-Japan interest-rate differential, while fading hopes for stability in the Middle East and concerns about intervention restrained the market's movement.
On the 24th, following the long weekend, dollar-yen showed firm price action in the Tokyo foreign exchange market, trading in the low ¥158 range in the morning. Yen selling and dollar buying prevailed as expectations for US rate hikes strengthened and the market focused on a widening US-Japan interest-rate differential.
In the afternoon, yen buying paused against the backdrop of the Japanese government's efforts to restrain yen depreciation, and the dollar recovered to around ¥158. Fading hopes for stability in the Middle East also supported dollar buying, but some market participants took the view that concerns about intervention would limit the yen's decline.
As of 10 a.m., the yen was down 58 sen from the previous weekend at ¥158.06–¥158.08 per dollar, while the euro stood at ¥179.83–¥179.84. In the afternoon, dollar-buying momentum strengthened as hopes for stability in the Middle East faded, while views spread that the yen's decline would be limited.
Through the afternoon of the 24th, the trading range was ¥157.79–¥158.37 for dollar-yen, ¥179.51–¥180.24 for euro-yen, and $1.1369–$1.1388 for euro-dollar. Major currencies were in a pattern that made declines difficult, and the yen-buying momentum was seen as having paused.