Japan's fiscal policy-led yen depreciation and rising US stocks drive risk-on, causing the USD/JPY to rebound.

【11/24Market Overview

Tokyo time, the dollar-yen pair stays muted as today is a holiday156around mid-156 level. Although Mr. Aida, a member of the Japan Growth Strategy Council newly established by the Koizumi administration, suggested that “the government will respond to rapid yen depreciation with proactive currency intervention,” the reaction was limited. In European trading hours, with proactive fiscal policy under the Koizumi administration, concerns about Japan’s worsening fiscal health led to yen weakness, and the dollar-yen rose to156.93yen.During NYtime, with expectations of U.S. rate cuts pushing up U.S. stocks, risk-on sentiment emerged and the dollar-yen rose to157.18yen. Afterwards, upside was capped due to caution over possible BOJ yen-buying interventions.

【11/25Market View