In Tokyo trading on the 25th, USD/JPY weakened, briefly breaking below ¥158 and falling to the upper ¥157 range. Dollar selling and yen buying continued in the afternoon, sending EUR/JPY below ¥180, while the Nikkei 225 ended sharply higher.
USD/JPY weakened in Tokyo trading on the 25th. The dollar was sold against a backdrop of declining U.S. long-term interest rates and crude oil prices, while yen buying took the lead. In morning trading, the dollar briefly reached ¥158.92 before falling below ¥158 and into the upper ¥157 range.
EUR/JPY fell from ¥180.76 to ¥179.77, while EUR/USD rose from $1.1368 to $1.1390. At 5 p.m., indicative levels were around ¥158.10-20 for USD/JPY and ¥180.00-10 for EUR/JPY.
The Nikkei 225 opened at ¥65,639.62, reached a high of ¥66,410.27 and a low of ¥65,639.62, and closed at ¥66,364.20, up ¥850.21 from the previous day.
In comments from officials, the Bank of England's Deputy Governor suggested the possibility of an interest-rate increase against a backdrop of rising inflation risks. Finance Minister Katayama said that concerns over yen depreciation had been voiced at the Japan-U.S. summit, and expressed the view that coordination with the Bank of Japan and the stable achievement of its price target were expected. There were no notable economic indicators.