Business · Markets · 5 hrs ago
Yen slips against dollar as US bond yields rise
The yen weakened slightly against the dollar in New York on Oct.
23, ending at 156.75–85 yen per dollar.
Rising US long-term bond yields put pressure on the yen because investors saw the gap between US and Japanese interest rates widening.
The yen’s fall was limited, partly because trading was subdued ahead of the weekend and concern about risks tied to AI investments supported demand for the yen as a lower-risk currency.
Oil prices also rose amid concern that worsening clashes in the Middle East could disrupt supplies, raising worries about Japan’s import costs and trade balance.
US business surveys were mixed: manufacturing activity beat expectations, while services fell slightly short, so the figures had little effect on currencies.
Investors were watching the Federal Reserve meeting on Oct.
27–28 and the US midterm elections on Nov.
3 for clues about what may move markets next.
The yen fell slightly against the dollar in New York on Oct. 23, ending at 156.75–85 yen per dollar.
Rising US long-term bond yields encouraged yen selling and dollar buying amid expectations of a widening US-Japan interest-rate gap.
The yen’s decline was limited as trading was subdued ahead of the weekend and some investors viewed AI-related credit risks as supporting demand for the yen.
Oil prices also rose on concerns that intensifying conflict in the Middle East could disrupt supply, adding to worries about Japan’s trade balance.
US manufacturing activity exceeded expectations in October, while services activity fell slightly short, limiting the market’s reaction to the data.
- Who
- The yen and the US dollar. The report also discusses the euro.
- What
- The yen weakened slightly against the dollar, closing at 156.75–85 yen per dollar.
- When
- Oct. 23, 2026, in New York trading.
- Where
- The New York foreign exchange market.
- Why
- Rising US long-term yields raised expectations of a wider US-Japan interest-rate gap, prompting yen selling and dollar buying.
This story does not have two clearly opposing sides.
US long-term yields had fallen to their lowest level in about a month.
US long-term yields rose again, briefly moving above 5%.
October’s preliminary US manufacturing PMI was reported at 56.0, above market expectations, while the services PMI was 57.9, below expectations.
The yen closed at 156.75–85 per dollar, down 5 sen against the dollar from the previous day.
- Yen close
- 156.75–85 yen per dollar
- Daily move
- 5 sen weaker against the dollar
- US long-term yields
- Briefly rose above 5%
- WTI crude
- Closed in the low $103 range per barrel, up 3.8%
- US manufacturing PMI
- 56.0 in October; market expectation was 55.3
1 source
What people are saying
AI-related credit risks are leading to buying of the yen, which is considered a low-risk currency.