JAKARTA - The US dollar returned to the range below 160 yen at the start of trading on Friday in Tokyo. The day before, the dollar exchange rate had fallen sharply by almost 5 yen in New York amid speculation of Japanese authorities' intervention.
Kyodo News, quoted Friday, July 31, reported that the US dollar had fallen below the 158 yen level in overnight trading in New York. After that, the dollar turned stronger again in Tokyo.
Intervention is a step taken by the government or central bank to hold back the movement of a currency that is considered too sharp. In the case of the yen, the issue of intervention usually arises when the exchange rate moves quickly in a short time.
At 0900 Tokyo time, the U.S. dollar was trading at 160.18-160.19 yen. The figure was compared to 159.42-159.52 yen in New York, after touching 157.97 yen.
On Thursday at 17.00 Tokyo time, the US dollar was still at 163.73-163.74 yen. This means that the yen had strengthened quickly before the dollar returned to around 160 yen.
The euro also moved against the US dollar and the yen. On Friday morning in Tokyo, the euro was at 1.1523-1.1524 US dollars and 184.58-184.60 yen.
The position was compared to 1.1523-1.1533 US dollars and 183.69-183.79 yen in New York. At the end of Thursday afternoon trading in Tokyo, the euro was at 1.1436-1.1438 US dollars and 187.25-187.29 yen.
In the stock market, the Nikkei index actually soared more than 5 percent on Friday morning.
The increase came after concerns about the returns on massive investments in artificial intelligence or AI eased. Sentiment improved after a number of companies in the United States and Japan recorded strong earnings reports.
AI or artificial intelligence has recently become one of the big themes in the global stock market. Investors are paying attention to whether large spending in this sector really gives results for companies.
Kyodo News noted that at 09.31 Tokyo time, the Nikkei Stock Average, which contains 225 stocks, rose 3,249.81 points or 5.25 percent from Thursday's closing to 65,117.24.
The broader Topix index also rose 73.75 points or 1.87 percent to 4,026.25.
On the Prime Market, the main board of the Tokyo Stock Exchange, the sectors that recorded the largest increase were non-ferrous metals, glass and ceramic products, and electrical equipment.
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