The dollar-yen exchange rate in the foreign exchange market from tonight through the 30th is likely to be influenced by the press conference of U.S. Federal Reserve Board (FRB) Chairman Jerome Powell scheduled for the 29th. The expected range is 158.50 yen to 161.00 yen per dollar.

The FRB will hold the Federal Open Market Committee (FOMC) meeting on the 28th and 29th. While the policy interest rate is expected to remain unchanged, the focus will be on what monetary policy outlook will be presented amid heightened concerns over inflation stemming from turmoil in the Middle East situation. If Fed Chair Powell does not hide his concerns about inflation and shows a positive stance toward raising interest rates, pressure for dollar buying and yen selling could intensify.

However, Finance Minister Satsuki Katayama stated at a press conference after the cabinet meeting on the 28th regarding the handling of foreign exchange during the extended holiday period that "we are responding 24 hours a day," and concerns about intervention continue to linger. In addition, Bank of Japan Governor Kazuo Ueda's comment at a press conference on the 28th that "there is a possibility of proceeding with a rate hike if there is no significant downside risk to the economy even amid the turmoil in the Middle East situation" is also likely to suppress further yen selling.

Meanwhile, the Richmond Fed manufacturing index for April and the Conference Board Consumer Confidence Index for April will be released on the 28th Japan time, and U.S. housing starts for March and U.S. durable goods orders for March will be released on the 29th.

Source: MINKABU PRESS

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