Euro Plunges to 158.20 vs Yen as Bessent Remarks Boost Yen Demand

EUR/JPY plunged to 158.20 from 159.85 in late New York trading — its largest one-day drop in three weeks — after U.S. Treasury Secretary Scott Bessent’s FX policy remarks were viewed as yen-supportive, prompting traders to cut short-yen positions. Earlier in the day, the pair had advanced to 162.45 (+0.3%) on weaker-than-expected Japanese household spending: -0.4% m/m (exp. +0.3%) and -1.8% y/y (exp. -0.9%), reducing BoJ rate hike odds. USD/JPY slipped below 149.00 for the first time since mid-February, with yen crosses volume and call option demand surging amid policy divergence plays.