Bank of England Governor Bailey told the Guardian newspaper that he would be “a little more aggressive” in cutting interest rates, which accelerated the fall of the pound.
Initially, the dollar was also caught up in the pound-yen sell-off and fell, but it can be said that a dollar reassessment is taking place.

Governor Bailey also said that he is watching the situation in the Middle East closely, noting that oil prices have been stable so far, but could soar depending on the situation.
If oil prices were to soar, the yen would be the most disadvantaged.

In Japan, the new administration of Shigeru Ishiba has started. In an interview with Reuters, he once said, “I don’t know such a thing, and I can’t say it from a political standpoint,” but he added, “Common sense says that 110-140 yen is the appropriate level.
However, he referred to a specific level, saying, “Common sense tells us that 110-140 yen is an appropriate level. This gave the impression that Ishiba = a strong yen, and the yen appreciated to around 141.65 yen against the dollar.
However, on TV Tokyo’s “World Business Satellite,” he stated that “the tone of monetary easing will not change. He has also pledged to achieve a minimum wage of 1,500 yen, and an accommodative environment will be indispensable to achieve this.

Regardless of his image, he will probably refrain from using deflationary language or raising taxes before the general election is held in the near future. Therefore, the yen’s strength will not last very long, and while there may be some risk-off buying of the yen, we also need to watch out for the risk of yen selling sweeping the market, as it did during Russia’s invasion of Ukraine.