TOKYO - The U.S. dollar remained firm above the 161 yen line, briefly trading in the mid-161 yen zone in Tokyo on Friday, with the currency market showing little reaction to Finance Minister Satsuki Katayama's warning of "decisive" action if speculative moves weaken the Japanese currency.
The warning came after the dollar briefly approached the 162 yen line overnight in New York, hitting its highest level since July 2024 at 161.81 yen, after the U.S. Federal Reserve signaled it could raise interest rates within a year.
Although the dollar briefly fell below the 161 yen line after Katayama's remarks in the morning, the U.S. currency traded mostly in the lower 161 yen zone on the Fed's move and on uncertainties over the course of peace talks between the United States and Iran, which prompted crude oil futures to rise.
"Perhaps (Katayama) hinted Japan would intervene in the currency market at any time," said Yuzo Sakai, chief manager of business planning at Ueda Totan Forex Ltd. "The point is whether (Japan) would be able to prevent the dollar from strengthening beyond the 161.90 line or 162.00 yen line."
The 225-issue Nikkei Stock Average ended up 196.57 points, or 0.28 percent, from Thursday at 71,250.06, marking an all-time closing high. The broader Topix index finished 23.22 points, or 0.57 percent, lower at 4,044.96.
The Nikkei index posted a seven-day winning streak, led by gains in semiconductor-related issues, adding around 7,000 points during the period.
The Nikkei opened strongly and hit a fresh intraday high near 72,000, but pared its gains later in the day after West Texas Intermediate crude oil futures rose on news that U.S. Vice President JD Vance's trip to Switzerland for further negotiations with Iran had been postponed.
On the top-tier Prime Market, the main gainers were nonferrous metal and oil and coal product issues, while bank and precision instrument shares were notable decliners.
