Yen Edges Weaker to ¥151 in Tokyo as Stocks Rally and Policy Expectations Steer Flows

Overview

• By 5:00 p.m. in Tokyo the dollar traded at ¥151.15–151.17, after the yen briefly strengthened in the morning.
• At 10:00 a.m. the pair stood at ¥150.66–150.68 as a decline in U.S. long-term yields narrowed the Japan–U.S. rate gap and supported some yen buying.
• Risk-on sentiment tied to a rising Nikkei prompted investors to sell the yen, which is viewed as a relatively safe asset.
• Traders cited expectations for policies under incoming prime minister Sanae Takaichi and a fading view of an early Bank of Japan rate hike as factors behind late-session yen softness.
• The euro was quoted around the mid-¥175s against the yen during the same session.