Dollar/yen briefly rose to 161.98 yen, the highest in about 39 and a half years since December 1986.

【6/29Market Overview

Tokyo time, the dollar/yen briefly fell to161.69yen, but quickly rebounded to161.84yen. Afterwards, it traded around the upper 161 range. In European session, the dollar/yen remained move-limited in the upper 161s.NYtime, the Japanese government, in its Basic Policy for Economic and Fiscal Management and Reform to be formulated in July (the "Guiding Principles"), is seen to restrain the Bank of Japan from pursuing additional rate hikes aimed at curbing high prices, causing expectations for an earlier BOJ rate hike to fade. Overall, the yen came under selling pressure, and the dollar/yen briefly reached161.98yen and1986year12month, marking the highest level in about39years and a half.

【6/30Market Outlook