The dollar strengthened to around ¥160 against the yen late in trading on the 1st in the Tokyo foreign exchange market, supported by higher long-term U.S. interest rates in out-of-hours trading and other factors. Rising crude oil prices were also cited as a source of support.
In late trading, the dollar-yen rate rose to around ¥159.98 per dollar, representing dollar strength and yen weakness of approximately 41 sen from the previous day. Higher long-term U.S. interest rates and rising crude oil prices were cited among the factors, including those in out-of-hours trading.
Looking back at overseas market movements, the dollar fell to the ¥159.40 range early in European trading on corrective selling, then rebounded and moved sideways in the ¥159.60–70 range. Early in U.S. trading, it rose to around ¥159.90 against a backdrop of higher crude oil prices and rising long-term interest rates amid escalating tensions in the Middle East.
In the afternoon, reports said that U.S. Treasury Secretary Bessent had indicated measures by the Bank of Japan and the government to restrain yen appreciation, but the market reaction was muted, and the dollar also pared its gains toward the end of trading. Market participants pointed out that concerns over intervention by the government and the Bank of Japan remain firmly entrenched.
The euro softened toward the end of trading, moving in ranges of ¥185.50–51 against the yen and $1.1595–1.595 against the dollar.