Following reports of possible Bank of Japan rate hikes and remarks by U.S. officials, the dollar/yen fell to the low-155s.

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In Tokyo time, the dollar/yen rose to 156.53 yen as the next U.S. Treasury secretary-designate, Mr. Bessent, said that “the dollar must remain the world’s reserve currency.” Later, when some reports suggested that the Bank of Japan’s stance could be limited by the new U.S. administration, selling came to the fore and the dollar/yen fell to as low as 155.20 yen. After the selling subsided, it recovered to the 156 yen level. In European trading hours, dollar/yen rose to around 156.36 yen following a rise in U.S. 10-year Treasury yields.156.53yen to the upside.155.20yen fell to as low as.156yen was bought back to around the 156 yen level. Europeantime, the dollar/yen rose to156.36yen on the back of rising U.S. 10-year yields.NYtime, Fed Governor LaelBRBsaid3 months of rate cuts are not ruled out, and the pace of inflation could lead to up to 33–4 cuts this year—, which caused U.S. 10-year yields to fall, bringing the dollar/yen down to155.10yen.

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