The yen rose to the mid-153 yen level against the dollar, buying yen in response to the shrinking interest rate spread between Japan and the USA.

Updated on November 26, 2024, 8:24 JST (excerpt).
In the morning of the 26th, the yen exchange rate in the Tokyo foreign exchange market rose to the upper half of the 153 yen per dollar. Following the appointment of Scott Bessent as the next US Treasury Secretary, US long-term interest rates have significantly dropped, leading to continued yen buying and dollar selling due to the awareness of the narrowing Japan-US interest rate differential.
SBI Liquidity Market's Shinichiro Ueda, Chief of Financial Market Research, mentioned that the US long-term interest rates have dropped to the 4.2% range and it feels like 4.5% is becoming more distant. He pointed out that the return of the Dollar-Yen to the 154 yen range is a natural flow. He stated, 'With the Thanksgiving holiday approaching and some adjustments to the overdone, the upside for the Dollar is heavy, and the downside to the 153 yen range is not unlikely.'

The yen exchange rate is 153.93 yen against the dollar as of 8:20 am, 0.2% higher compared to the New York closing price.