Dollar/yen rose to the 144 yen level at one point on expectations of easing U.S.-China trade frictions.

【4/25Market Overview

Tokyo time, USD/JPY rose after the U.S.-Japan finance ministers' meeting, with Finance Minister Kato stating that there was “absolutely no mention of exchange rate levels or targets from the United States,” and there was no discussion of yen depreciation; that prompted dollar buying. With expectations of dollar buying around the referential rate and partial reports that “China is considering excluding some imports from retaliatory tariffs on US-made goods,” the pair briefly rose to143.85yen. In European trading, after the Chinese Foreign Ministry said it “does not have details” about trade talks, and stated that “China and the United States are not conducting negotiations or talks on tariffs,” and that “the United States should not mislead its people about talks,” the USD/JPY slipped to the143yen level in the lower to mid-140s. NYtime, expectations for easing of U.S.-China trade frictions increased, leading to yen selling and dollar buying. 4April’s final University of Michigan consumer sentiment index exceeded expectations, and USD/JPY rose to as high as144.03yen. Thereafter, weekend position adjustments and the decline in U.S. 10-year Treasury yields caused a retreat to143yen in the mid-140s.

【4/28Market View