The Japanese yen traded near 158 per dollar on Thursday after gaining nearly 1% in the previous session as the dollar fell sharply and Treasury yields retreated. The move followed the US Treasury Department’s decision to at least double liquidity-support bond buyback operations for securities maturing in 10 to 30 years, aimed at containing long-term borrowing costs amid concerns about market liquidity and stability. Longer term, the yen remains under pressure from wide interest rate differentials, fiscal concerns, and elevated energy and import costs. Japan’s trade deficit also widened sharply in July as imports reached a record high on increased crude oil purchases, while exports continued to grow robustly on strong demand for AI-related chips.