Dollar-Yen Resists Weakness Amid US Pressure and Rising Yields

The dollar-yen pair showed resilience in New York foreign exchange trading on the 25th. Despite briefly falling to 156.94 yen just before 11 p.m., the pair shifted to a resilient tone once selling ran its course, standing at 157.14 yen per dollar by midnight.

Yen buying prevailed due to expectations that pressure from the U.S. side to correct yen weakness would intensify, following President Trump's expression of concern about the weak yen at the Japan-U.S. summit and the reaffirmation at the Japan-U.S. finance ministers' online meeting that 'the yen's undervaluation is a problem.'

Finance Minister Katayama explained that Trump's remarks were 'not particularly a surprise,' but market participants increasingly expect Japanese and U.S. authorities to continue taking steps to correct yen weakness.