Overview
- The yen traded around the mid- to upper-¥157 range in sessions spanning Tokyo and New York, reaching about ¥157.6 per US dollar in Tokyo morning trade.
- Dollar buying was linked to signs of US economic resilience and a rebound in US stocks, which prompted investors to sell yen in favor of the dollar.
- Traders kept positions light and volatility subdued because both the Federal Reserve and the Bank of Japan have policy meetings this week.
- Market participants expressed concern that the Japanese government or the BOJ could intervene to support the yen, and that risk has limited wider moves in the currency.
- The euro was quoted near ¥176 during the same sessions, and historical note: Japan has intervened in FX markets before, so any renewed action would be closely watched for its impact on rates and import costs.