Overview
- The Bank of Japan published the Ministry of Finance's July statutory reference rate of 1 USD = 158 JPY on Friday, June 19, for use in reporting and accounting.
- Market trading has moved differently from that reference, with the yen weakening to the upper-161 per dollar range in New York on June 18 and trading around ¥161.31–33 in Tokyo on June 19.
- Traders and reporters linked the dollar's rise to stronger expectations for U.S. interest-rate increases after the Federal Reserve's policy update on June 17, which expanded the U.S.–Japan rate gap and encouraged dollar buying.
- Finance Minister Satsuki Katayama warned on June 19 that the government would take 'decisive measures' against speculative moves, and market participants say that the threat of intervention is helping to limit further yen weakness.
- The BOJ's publication also listed July arbitrage rates for other currencies (for example, €1 = ¥185, £1 = ¥213, CHF 1 = ¥202) that are based on May market averages and do not by themselves change spot market prices.