FX summary: Dollar trades around 157.30 yen as narrowing Japan-U.S. rate differential expectations drive sharp yen gains
In Tokyo foreign exchange trading on the 3rd, the dollar traded about 157.37 yen as of 3:00 p.m., down over 2.30 yen from 5:00 p.m. the previous day, reflecting dollar weakness and yen strength. The euro traded about 182.55 yen, also down over 2.30 yen on similar euro weakness and yen strength.
The dollar-yen pair hovered about 158.90 yen at 9:00 a.m., but then saw a rapid dollar sell-off and yen rally. The pair fell below 158 yen shortly after 11:30 a.m. and extended losses to the 157.30 yen range by 3:00 p.m., reaching its lowest level since Aug. 7. Dovish comments from New York Federal Reserve President Williams the previous day pushed U.S. long-term rates lower. Combined with growing expectations of Bank of Japan rate hikes, speculation over a narrowing Japan-U.S. interest rate differential intensified, fueling dollar selling and yen buying.
Against the dollar, the euro traded about 1.1599 dollars, up over 0.0020 dollars, reflecting euro strength.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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