Week in review

The USD/JPY opened near this week's low at 159.94. The dollar weakened early in Tokyo trading on 15 June after the US and Iran reached a ceasefire agreement over the weekend, but the move did not last. The pair then traded in the low 160 range ahead of the BOJ and Fed policy decisions. The BOJ announced a rate hike on 16 June and Deputy Governor Shinichi Uchida held the post-meeting press conference, but this did not give the market a clear sense of direction. However, the FOMC on 17 June was viewed as hawkish, creating a stronger dollar tone. The USD/JPY rose above 160.50 and extended gains to the 161 range on 18 June, reaching 161.81, its highest level since July 2024. On 19 June, caution around elevated levels and comments from Finance Minister Satsuki Katayama weighed somewhat on the topside, and the pair was temporarily pushed back to around 161 (Figure 1). The dollar strengthened across the board against G10 currencies this week after the FOMC. The yen also performed relatively well, supported by the BOJ's rate hike (Figure 2).

FIGURE 1: USD/JPY

Note: As at 13:00 JST on 19 June
Source: EBS, Refinitiv, MUFG

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

Note: As at 13:00 JST on 19 June
Source: Bloomberg, MUFG