Against the backdrop of the yield on newly issued 10-year JGBs briefly rising into the 3% range, a view was expressed that the interest-rate differential with the US could affect the yen exchange rate, drawing attention to the yen's future movements.
At a press conference on the 1st, Yamaguchi Akio (山口 明夫), representative secretary of the Japan Association of Corporate Executives, referred to the yield on newly issued 10-year JGBs briefly rising into the 3% range and said he believed the interest-rate differential with the US could affect exchange rates.
Yamaguchi Akio (山口 明夫) said he would closely monitor the yen's movements, suggesting concern that fiscal caution and developments in monetary policy could directly affect the yen exchange rate.
The remarks came in the context of expectations that US interest-rate trends and the outlook for the Bank of Japan's monetary policy could drive fluctuations in the yen exchange rate.
Market participants are expected to assess developments in long-term interest rates and the response of the foreign-exchange market, leaving the market waiting for the next developments.