The yen traded in the mid-¥157 range against the dollar. Lower oil prices and declining US long-term yields were cited as factors behind expectations for higher bond prices. The strengthening of cooperation between the Japanese and US finance authorities and heightened market vigilance over intervention were also mentioned.
In the foreign exchange market on the 28th, the yen traded in the mid-¥157 range against the dollar, moving toward yen strength compared with late Friday afternoon. The renewed decline in crude oil prices and lower US long-term yields were cited as factors.
North Sea Brent crude traded below $105 a barrel, while the US 10-year Treasury yield fell. Bonds were expected to rise, with the market’s projected trading range around ¥124.30-¥124.60.
Japan’s Finance Minister Katayama Satsuki (片山さつき) held a phone call with US Treasury Secretary Bessent on the night of the 25th, Japan time. The Ministry of Finance announced that they had reconfirmed their view that the yen’s undervaluation was a problem and agreed to strengthen Japan-US cooperation. Cooperation was also provided with reporting on BOJ operations. In a highly specific figure, the December contract, the central contract month in overnight futures trading, closed at ¥124.42.
Ueda Marito (上田真理人), president of SBI FXTRADE, said that “there is no catalyst to keep buying yen,” according to market participants. He also expressed the view that vigilance over intervention would intensify if the exchange rate approached ¥159.