Good morning, you're tuned in to Markets Desk.
The Japanese yen has broken through one hundred sixty-two to the dollar, touching its weakest level in forty years. The Federal Reserve's hawkish repositioning is the primary driver here — as rate differentials widen, carry traders keep pressing the yen lower, and Tokyo's intervention credibility is wearing thin with every session.
That pressure on Japan compounds a separate concern for foreign capital already reassessing its exposure there. Private equity executives are openly warning that the reform momentum that drew institutional money into Japanese equities is stalling, with the pendulum swinging back toward economic nationalism. That narrative, if it hardens, has real implications for the corporate governance story that underpinned the Tokyo rally.
Turning to emerging markets, Indian equities are set for a cautious open despite overnight strength on Wall Street. The drag is geopolitical — US-Iran nuclear talks are keeping risk appetite measured across Asia. Traders are reluctant to chase the American momentum when a headline out of those negotiations could reprice energy and regional stability in a single session.
That's the tape. Markets Desk, signing off the floor.
