Dollar-yen moved toward the ¥160 level, while the yen was influenced by Vice Minister of Finance Mimura’s (三村) warning against yen depreciation and cautious comments from a Bank of Japan official. With FRB-related speeches and US economic data releases scheduled for tonight, concerns over renewed FX intervention could intensify.
In the Tokyo market, dollar-yen moved within a narrow range and at one point approached ¥160. Following Vice Minister of Finance Mimura’s (三村) comments warning against yen depreciation, the pair temporarily weakened to around ¥159.48 before rebounding to approximately ¥159.84 after comments by BOJ committee member Asada (浅田).
Vice Minister of Finance Mimura (三村) said, “The moves over the past few days have been too fast,” cautioning against yen depreciation. This led the market to focus on curbing short-term price movements.
BOJ committee member Asada (浅田) stressed that careful judgment was needed regarding the pace of future rate hikes. The comments addressed downside risks to the economy and the level of the neutral interest rate, drawing attention to the direction of monetary policy.
In overseas markets, upward pressure on the dollar has resurfaced as expectations of US rate hikes strengthen. With a speech by a senior FRB official scheduled for tonight, dollar-yen could be poised to retest the ¥160 level.