The dollar-yen exchange rate is expected to lean toward dollar buying and yen selling tonight through tomorrow amid lingering Middle East uncertainty and fading expectations for a Bank of Japan (BOJ) interest rate hike. The projected range is 158.40 yen to 159.30 yen per dollar.

While expectations persist for renewed U.S.-Iran talks to end hostilities, high uncertainty continues to support safe-haven dollar demand. Bloomberg reported that Finance Minister Satsuki Katayama said on April 15 that many G7 finance officials voiced a wait-and-see stance on monetary policy due to concerns over the economic impact of rate hikes. This has dampened speculation of a BOJ hike at its April meeting, weighing on the yen.

However, aggressive yen selling remains difficult as Katayama signaled readiness to intervene if necessary, stating "we will take decisive action if needed" after meeting U.S. Treasury Secretary Scott Bessent. Vice Finance Minister for International Affairs Atsushi Mimura also noted close cooperation with the U.S. on foreign exchange. Following the G20 meeting on April 16, BOJ Governor Kazuo Ueda and Katayama are expected to hold a joint press conference, which could trigger market volatility.

Meanwhile, the U.S. is scheduled to release weekly initial jobless claims, the April Philadelphia Fed manufacturing index, and March industrial production later today. New York Fed President John Williams and Federal Reserve Governor Milan are also slated to speak.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.