U.S. forex recap: Dollar briefly rises above 157.50 yen on strong U.S. economic data

In the New York foreign exchange market on Sep 30, the dollar traded at about 157.41 yen, up slightly more than 0.10 yen from the prior session, reflecting dollar strength and yen weakness. The euro stood at about 178.35 yen, down about 0.05 yen, reflecting euro weakness against the yen.

The U.S. Personal Consumption Expenditures (PCE) price index for Aug, released that day, rose 3.4% year-on-year, unchanged from Jul (which was revised downward to 3.4% from an initial 3.7%), coming in below market expectations. The core PCE price index, excluding volatile food and energy prices, also rose 3.0% year-on-year, falling short of market forecasts. As expectations for additional U.S. rate hikes receded, the dollar/yen pair briefly softened to 156.60 yen. However, the dollar found support after final Apr-Jun real GDP was revised upward to an annualized 2.2% quarter-on-quarter from the prior 1.5%, and after the ADP National Employment Report showed private-sector payrolls increased by 90,000 from the prior month, surpassing market expectations. As U.S. long-term interest rates rose on the back of economic strength, dollar buying intensified and the pair briefly climbed to 157.50 yen.

Against the dollar, the euro traded at about 1.1330 dollars, down slightly more than 0.0010 dollars from the prior session, reflecting euro weakness and dollar strength.

Source: MINKABU PRESS

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