Dollar/yen, amid growing tensions in the Middle East, remains range-bound around 163 yen.

【7/22Market Overview】

Tokyo time, USD/JPY remained in a narrow range around163.10yen. Finance Minister Kotaro Kono (Note: actual name in original text is Katsura, please verify) stated views such as “We will not change our stance on FX intervention, and we will take action whenever necessary,” but market reaction was limited. In European time, reports suggested the Bank of Japan could accelerate its pace of rate hikes to about once every six months, and as expectations for an earlier BOJ tightening grew, USD/JPY briefly fell to around162.64yen, but soon rebounded to around162.90yen. In NY time, USD/JPY rose to around163.17yen on firmer crude oil and the rise in U.S. 10-year Treasuries amid concerns over Middle East tensions. Additionally, President Trump warned on hisSNSthat “if Iran attacks ships in the Gulf, the United States will destroy Iran’s bridges or power plants,” raising concerns about a possible escalation between the U.S. and Iran.

【7/23Market View】