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Yen Rises to High ¥149s as Nikkei Falls 695 Points

Falling U.S. long‑term yields linked to regional‑bank worries narrowed the JapanU.S. rate gap, boosting demand for the yen.

Overview

  • At 5 p.m. in Tokyo on Oct. 17, the dollar traded at ¥149.69–¥149.72, about ¥1.54 stronger for the yen from the prior day.
  • The Nikkei 225 closed at 47,582.15, down 695.59, moving back below 48,000 after a two‑day rally of roughly 1,400 points.
  • Market commentary highlighted narrowing rate differentials due to lower U.S. long‑term yields tied to regional‑bank credit concerns as the main catalyst for yen buying.
  • Traders also cited perceived hawkish remarks from BOJ Deputy Governor Shinichi Uchida and a turn toward risk aversion as additional supports for the currency.
  • In New York on Oct. 17, the dollar showed brief strength after President Trump voiced optimism on U.S.–China relations, with the yen around ¥150.43–¥150.53 early in the session.