Week in review

The USD/JPY opened the week at 156.92. The pair edged higher from early Asian trading on 4 May, a holiday in Japan, but briefly plunged to the 155 range around midday. It quickly recovered to the 156 range and then rose to the low 157 range. The pair traded broadly sideways during Asian trading on 5 May before rising to just below 158 after European participants entered the market. However, it fell sharply again during Asian trading on 6 May, hitting a low of exactly 155 then quickly recovering to around 156.50 before trading in the low 156 range through 7 May, after Japan's holiday period ended. The dollar strengthened during US trading on 7 May following reports that the US and Iran had exchanged fire, and the USD/JPY edged higher to just below 157. The pair was still trading in the upper 156 range at the time of writing on 8 May (Figure 1). G10 currency moves this week were limited, with currencies moving less than 1% higher or lower around the dollar. The yen repeatedly made sharp moves against the dollar, but viewed over the week as a whole, it did not move significantly against either the dollar or other currencies (Figure 2).

FIGURE 1: USD/JPY

Note: As at 13:00 JST on 8 May
Source: EBS, Refinitiv, MUFG

FIGURE 2: MAJOR CURRENCIES' RATE OF CHANGE VS USD THIS WEEK

Note: As at 13:00 JST on 8 May
Source: Bloomberg, MUFG