In the Tokyo foreign exchange market on the 16th, the beginning of the week, the yen exchange rate temporarily rose to the low 127 yen level to the dollar due to the view that the Bank of Japan might move to revise its monetary easing measures, but then rose again. There was also a move to sell the yen, resulting in rough price movements.
In the bond market on the 16th, there was a growing trend to sell government bonds due to the speculation that the Bank of Japan would move to revise monetary easing measures at its monetary policy meeting to be held from 17th to 18th, and Japan's long-term interest rates rose. It rose again to 0.51%, surpassing the 0.5% upper limit set by the Bank of Japan.
In response to this, in the foreign exchange market, there was a growing movement to sell the dollar and buy the yen as the interest rate differential between Japan and the United States narrowed, and the yen exchange rate temporarily rose to the low 127 yen level.
After that, there was a movement to sell the yen, which had risen in value, in order to secure immediate profits. It was just Yen.
Against the euro, it was 65 sen compared to last weekend, and 1 euro = 138.61 to 65 sen as the yen strengthened against the euro.
The euro was 1 euro = 1.0830 to 31 dollars against the dollar.
"The market is paying more attention to what kind of response the BOJ will take after tomorrow's meeting, and the yen exchange rate is likely to be greatly influenced by the outcome of the meeting," said a market source.