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Dollar softens to 156.40 yen range in U.S. forex market as inflation concerns ease

Mon May 11, 2026 7:55 am JST Currency

The dollar traded at around 156.68 yen in the New York foreign exchange market on the 8th, finishing approximately 25 sen lower against the yen compared to the previous day. The euro was at around 184.66 yen, approximately 65 sen higher against the yen.

The U.S. employment report for April released on this day showed non-farm payrolls exceeded market expectations, while average hourly earnings growth came in below forecasts. This eased inflation concerns and led to a decline in U.S. long-term interest rates, prompting dollar-selling and yen-buying flows on expectations of a narrowing U.S.-Japan interest rate differential. U.S. Secretary of State Rubio indicated that the U.S. expects to receive a response from Iran by the 8th regarding a memorandum proposed by the U.S. side in negotiations over ending combat with Iran, raising expectations for progress in peace talks. The dollar-yen pair softened to 156.44 yen at one point. Subsequently, the decline slowed, but upside remained limited as the University of Michigan's consumer sentiment index (preliminary) for May, released earlier, hit a record low. Meanwhile, euro-buying and dollar-selling dominated against the backdrop of lower U.S. long-term interest rates, leading to euro gains against the yen as well.

The euro traded at around 1.1787 dollars against the dollar, approximately 0.0060 dollars higher compared to the previous day.

Source: MINKABU PRESS

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

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