Dollar-yen traded softly in the Tokyo market on the morning of the 10th, rising to ¥153.74 before falling back to ¥153.28. A Bank of Japan official expressed support for a tighter policy stance, strengthening pressure to buy the yen. The turmoil in the Middle East and the loss of momentum in crude oil prices also affected the dollar.
Dollar-yen traded softly in the Tokyo market on the morning of the 10th, rising to ¥153.74 during the session before falling to ¥153.28. The trading range was ¥153.28–¥153.74, while euro-yen remained between ¥178.42 and ¥178.83, and euro-dollar between $1.1629 and $1.1640.
A Bank of Japan official expressed a favorable view of a tighter policy stance and indicated an intention to keep financial conditions restrictive. This at times strengthened pressure to buy the yen.
Amid continued turmoil in the Middle East, the loss of momentum in crude oil prices also weighed on the market, with some selling of the dollar observed. Market participants are closely watching the Bank of Japan’s future policy moves and interest-rate outlook.
In comments by a key official, a Bank of Japan Policy Board member stated that “financial conditions are accommodative and that prices should be kept under control through an appropriate level of interest rates and policy mix,” and indicated that interest rates could be raised if inflation accelerates.