Yen plunges to 163 yen level, 39-1/2-year low, intervention concerns grow

On Monday the 21st, the yen plunged to the 163 yen per dollar level, renewing its lowest level in about 39 and a half years. Deterioration in the Middle East situation and expectations of a Fed rate hike accelerated dollar buying, and concerns about government intervention are growing. Meanwhile, the Nikkei average rebounded from last weekend's sharp drop, rising 2,091 points, and a pause in selling of AI stocks and a shift of funds to non-AI stocks also became apparent.

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Yen falls to 163 yen level, renews 39-1/2-year low Safe-haven dollar buying advanced due to heightened tensions in the Middle East, and higher oil prices also induced yen selling through concerns about a trade deficit. Expectations of further Fed rate hikes also supported the dollar's strength, and concerns about yen-buying intervention by the government and BOJ are mounting further. 1 2

Nikkei average rises 2,091 yen to 66,232 yen, rebounds after three trading days As a reaction to the sharp drop of nearly 2,700 yen last weekend due to a plunge in AI and semiconductor stocks, short covering and value buying dominated on the 21st, and buybacks progressed, centering on semiconductor stocks. The Nikkei average closed up 3.26%, recovering the 66,000 yen level. 3

AI暴落の陰で非AI株が34.8%上昇、内需株に資金シフト 半導体・AI関連株が急落する一方、非AI銘柄は前週末比で34.8%上昇している。楽天証券のレポートは、AI一極集中からの資金分散と、金利低下・円安で好決算が期待される内需株へのシフトを指摘した。 4