The remark that acknowledged discussing the exchange rate at the Japan-U.S. finance ministers' meeting dampened sentiment, and the dollar/yen fell to as low as 144.09 yen.

【5/20Market Overview

During Tokyo time, USD/JPY rose to around 145.51 yen on the inbound demand for dollars in the domestic market on the Goto-date (May5,10th) with the cash market, but then slowed. When Finance Minister Katō stated that in discussions with U.S. Treasury Secretary Yellen (Bessent) they would discuss issues between the two countries including the exchange rate, USD/JPY fell to144.72yen. Later, reports that Treasury Secretary Yellen would be absent from the U.S.-Japan tariff negotiations scheduled on the 23rd caused the pair to rise to2145.30yen. In European time, as European participants entered the market buying yen and selling dollar, USD/JPY declined to144.09yen. After the decline, supported by a sturdy European stock market with Germany’sDAX continuing to reach all-time highs, USD/JPY saw renewed demand for the dollar. In New York time, ahead of the G7 meeting (lead finance ministers and central bank chiefs) and the three rounds of U.S.-Japan trade negotiations, a risk-off mood prevailed and USD/JPY moved without a clear directional bias around the mid-144s.G7 Finance Ministers and Central Bank Governors’ Meeting,7 and the3rd round of the U.S.-Japan trade talks,144yen range, with no definite direction.

【5/21Market View