The dollar-yen rate firmed in the low ¥159 range in the Tokyo foreign exchange market on the morning of the 25th. Dollar buying in response to higher long-term US yields prevailed, but concerns over government and Bank of Japan intervention capped gains, limiting the trading range.
In the Tokyo market on the morning of the 25th, the dollar-yen rate stood at 159 yen 36–36 sen at noon, up 21 sen for the dollar against the yen from 5 p.m. the previous day. Higher long-term US yields in after-hours trading prompted dollar buying, but concerns over intervention capped gains, keeping the rate within its range.
In overseas markets the previous day, the dollar rose to nearly 159 yen 30 sen at one point, carrying over the buying trend from European trading, before coming under pressure during US trading. Dollar buying nevertheless continued overall, and the currency recovered to the low ¥159 range toward the close.
The dollar was sold somewhat in early Tokyo trading, opening around 159 yen 00–10 sen, but buying emerged toward 9 a.m. The rate rose to nearly 159 yen 20 sen around the Tokyo fixing, amid speculation that real-demand buying had also emerged. Toward noon, it edged slightly higher as US yields rose.
Concerns over government and Bank of Japan intervention remained strong among market participants. With events including a speech by Himino (氷見野), Deputy Governor of the Bank of Japan, and the Jackson Hole symposium ahead, some said that a wait-and-see mood was prevailing. The euro was firm against the yen and flat against the dollar.