In news released at 17:24, dollar-yen traded firmly in the Tokyo market and recovered the 160 level in the evening. Expectations of an early rate hike by the FRB prompted renewed dollar buying.
In the Tokyo market on the day, dollar-yen touched ¥159.59 in the morning before stronger dollar buying drove it up to ¥160.02 toward evening. Month-end factors were also said to have contributed to the yen's perceived undervaluation.
Euro-yen fell from ¥185.69 to ¥185.40, while euro-dollar declined from $1.1624 to $1.1588.
At 17:00, dollar-yen stood at ¥160.00-160.10 and euro-yen at ¥185.40-185.50. The Nikkei Stock Average closed at ¥66,215.34, down ¥96.59 from the previous day.
In comments by officials, Chief Cabinet Secretary Kihara (木原) said the government was closely watching long-term interest rates in the 3% range, while Finance Minister Katayama (片山) said that coordinated intervention by Japan and the United States would be based on international agreements.