Dollar-yen declines for the first time in seven days following reports that China is restraining its U.S. Treasury holdings.

【2/9Market Overview

Tokyo time, the dollar/yen rose on expectations that the ruling Liberal Democratic Party's landslide victory in the House of Representatives election on 2/8 would allow Prime Minister Kishida's fiscal expansion policy to proceed smoothly, climbing briefly to157.65yen, but then slipped to156.20yen after a statement from Finance Official Mimura that “the market is under close watch with high vigilance.” Subsequently, when reports indicated that Chinese regulators advised financial institutions to restrain US Treasury holdings, upside pressure faded and the rebound was subdued. In European trading, dovish Banque de France Governor Villeroy de Galhau unexpectedly announced his resignation, prompting euro buying and dollar selling.NY time,2/11, ahead of the release of the January U.S. jobs report, the chairman of the National Economic Council (NEC) said that “nonfarm payrolls are expected to decline slightly,” which also weighed on the dollar and sent dollar/yen down to155.52yen.

【2/10Market View