Yen weakens to 153.40 per dollar as U.S. yields and oil rise

  • Yen weakened against the dollar and euro in Tokyo trading on the 10th.
  • 153.40–42 per dollar was the 5 p.m. rate, down 29 sen.
  • U.S. yields, oil prices, trade-balance concerns and gotobi demand shaped trading.

The yen weakened in Tokyo trading on the 10th, closing at 153.40–42 per dollar at 5:00 p.m., down 29 sen from the previous day, and at 178.55–59 per euro, also down 29 sen. Selling intensified during the morning, with the yen reaching 153.66–68 per dollar at 10:00 a.m., a 55-sen decline from the previous day's 5:00 p.m. level. Higher U.S. long-term interest rates fueled expectations of a wider Japan-U.S. interest-rate differential, supporting dollar buying and yen selling. Rising crude oil prices added pressure by raising concerns about Japan's trade balance and potential yen selling by importers. The 10th was a gotobi day, when Japanese corporate orders tend to concentrate, and Japanese bank dealers reported a slight dollar shortage before the morning mid-rate fixing. Some participants said dollar-buying momentum was limited because real-demand players may already have placed substantial yen-selling and dollar-buying orders during coordinated intervention by the Japanese and U.S. governments. The yen recovered modestly in afternoon trading after reaching the upper 153 range, with participants noting that yen-buying pressure remained strong. On the 9th, the yen had briefly strengthened to around 153.25 per dollar on speculation that the Bank of Japan might accelerate rate hikes, before Middle East tensions drove crude oil futures higher and renewed trade-balance concerns prompted yen selling. Front-month October WTI briefly reached $94.78 a barrel in early trading on the 9th Japan time, its highest level in roughly three months, and remained in the $94 range above the previous day's $93.03 settlement. The yen also weakened to 178.74–77 per euro at 10:00 a.m. on the 10th, while the euro traded around $1.1632. Market participants expect crude oil prices and speculation about U.S. monetary policy to remain key drivers of the yen's direction.

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