As of 3 p.m., the dollar was trading in the low 163 yen range, slightly weaker against the yen compared to late New York trading the previous day. With crude oil prices trending higher amid heightened tensions in the Middle East, conditions remained conducive to dollar buying. Finance Minister Satsuki Katayama warned against yen weakening, stating that the government would take appropriate and decisive action whenever necessary, but the market reaction was limited. Aozora Bank Chief Market Strategist Akira Shoga noted that there were steady flows of buying on dips, with yen carry trades having a significant impact. He added that the view that the government is cautious about the Bank of Japan raising interest rates is increasing the sense of security around yen carry trades.
Aozora Bank, Ltd.Aozora Bank's strategist comments on yen carry trades and market flows, but no direct impact on the bank itself.