Overview
- The yen fell to 159.45 per dollar, its weakest since July 2024, before steadying near 158.55 after fresh verbal warnings from Tokyo.
- Japan’s 10‑year government bond yield rose to about 2.185%, the highest since February 1999, with reports of the 30‑year topping 3.51%.
- Finance Minister Satsuki Katayama said authorities would act against excessive moves without ruling out options and called recent swings inconsistent with fundamentals.
- The U.S. Treasury said Secretary Scott Bessent flagged the undesirability of excess exchange‑rate volatility and urged sound monetary‑policy formulation and communication.
- Markets are pricing earlier BOJ tightening, with some expecting a hike as soon as April, as Prime Minister Sanae Takaichi plans to dissolve the lower house next week and seek a February election.