In the New York foreign exchange market on the morning of the 21st, the yen weakened against the dollar, falling to the low ¥157 range per dollar. Reports that the Bank of Japan had asked financial institutions for their exchange-rate levels have heightened concerns about intervention.
The yen had fallen to the low ¥157 range per dollar at the opening of the New York market, trading at ¥157.30–40 as of 9:00 a.m. This was a 47-sen decline against the dollar from 5:00 p.m. the previous Friday.
A market source said it had emerged that the Bank of Japan had asked financial institutions for their exchange-rate levels during a temporary rise in the yen's value late the previous Friday. The move is believed to have been aimed at restraining speculative yen selling.
Even after the inquiry, dollar-buying remained dominant in overseas markets, and the yen continued to weaken against the dollar after the opening of the New York market. At the same time, the inquiry is viewed by some as a preparatory step toward intervention, heightening market caution.
The euro was trading at $1.1480–1.1490 per euro against the dollar and around ¥180.60–0 against the yen, indicating yen weakness and euro strength.