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Yen Rebounds to Mid-¥153 as Nikkei Pulls Back From Record and Dow Extends Slide

Traders stepped in to buy yen after reading Finance Minister Sanae Katayama’s remarks as a caution against further weakness.

Overview

  • The dollar rose to about ¥154 in New York on expectations of slower U.S. rate cuts and higher long-term Treasury yields.
  • In Tokyo trading the yen strengthened to around ¥153.58–¥153.60 after Katayama’s post-cabinet comments were interpreted as curbing excessive depreciation.
  • The Nikkei 225 briefly set an intraday high on strong corporate results, with Tokyo Electron advancing on favorable earnings and AI-related demand hopes.
  • Japanese stocks later reversed as profit-taking accelerated, with the Nikkei closing at 51,497.20, down 914.14 points from the prior close.
  • U.S. equities fell further, with the Dow Jones Industrial Average closing at 47,085.24, down 251.44 points, reinforcing risk-off flows that supported the yen.