Dollar/yen falls to 147.08 yen after remarks by U.S. Treasury Secretary Janet Yellen.

【7/21Market Overview

In Tokyo time,7/20the House of Councillors election (upper house) resulted in the ruling coalition (LDP and Komeito) falling short of a majority in the upper house, but given that there had been selling of yen in anticipation of a ruling-coalition majority loss the previous week, the dollar/yen reacted with yen buying at the start of the week and fell to147.97yen. Subsequently, it rose rapidly to148.66yen, but the dollar/yen continued to weaken to148.08yen. It should be noted that Prime Minister Ishiba formally expressed his intention to continue in office at a press conference. In European time, the ruling coalition’s setback was not as large as some had warned, leading to yen buying, and the dollar/yen fell to147yen-range mid-teens.NYtime, U.S.10year treasury yields declined and, with U.S. Treasury Secretary Yellen (Bessent) saying “if inflation slows, rates should be cut”, dollar selling came first, pushing the dollar/yen down to147.08yen.

【7/22Market View