Overview

• Tokyo’s 5 p.m. close put the dollar at ¥151.96–¥151.98, an 88-sen appreciation for the yen from the previous weekend.
• In New York morning trading, the yen was quoted at ¥151.91–¥152.01 per dollar, a 78-sen depreciation versus the prior weekend.
• Komeito’s announcement that it would leave the LDP-led coalition prompted yen buybacks, reversing part of the prior week’s weakness.
• A steep fall in the Nikkei heightened risk aversion and supported demand for the yen as a perceived safe asset.
• Last week’s so-called “Takaichi trade” had pressured the currency lower, while the euro traded near ¥175.49–¥175.53, roughly ¥1.46 stronger than a week earlier.