Electronic quotation boards display the Japanese yen’s rate against the US dollar at a foreign exchange brokerage in Tokyo on January 16, 2023.
The dollar fetched 128.04 yen in early Asian trade, against 127.87 yen Friday in New York where the yen firmed from 129.11 in Asian trade earlier in the day.“Japanese shares are seen starting with losses, with investors disheartened by the strong yen,” said senior market analyst Toshiyuki Kanayama of Monex.
The reversal was partly thanks to a surprisingly strong consumer sentiment report from the University of Michigan, analysts said. “A combination of upward pressure on Japanese yields and a paring of US rate hike expectations has seen some reversal of earlier depreciation pressure for the yen as rate differentials with the US widened,” said National Australia Bank economist Taylor Nugent.