Dollar-yen 159yen breached, yen weakness widens again
The dollar-yen exchange rate rose intraday to 159.066yen. Dollar buying prevailed as rising U.S. long-term interest rates coincided with concerns about Japan’s supplementary budget.
18On , the dollar-yen exchange rate crossed the 159yen mark. As of p.m. 2 minutes Korea time, the dollar-yen exchange rate was trading at 41, up 0.10% from the previous trading day. It rose as high as 158.919 yen at one point intraday.159.066 yen.
The dollar-yen exchange rate moved higher from early in the morning session. It then steadily expanded its gains. Yen weakness and dollar strength emerged together.
Rising U.S. long-term interest rates were cited as a factor behind dollar buying. As expectations of a U.S. central bank rate hike grew, demand for the dollar prevailed over demand for major currencies. Both the yen and the euro were affected by the dollar’s strength.
The US Producer Price Index (PPI), released last week, was also cited as a factor affecting market interest rate expectations. Economic indicators released afterward were also presented as supporting dollar buying. Inflation and economic data once again unsettled expectations for the interest rate path.
In Japan, concerns surrounding a supplementary budget were also cited as a factor behind the rise in the exchange rate. Fears that Japan’s fiscal burden could grow acted as a reason to sell the yen. This trend coincided with the dollar-yen exchange rate moving intraday 159past the yen threshold.
This move shows that the yen continues to lose ground against the dollar. The higher the dollar-yen exchange rate climbs, the more closely the market watches both US interest rates and Japanese policy factors. In that day’s trading, both factors pushed the exchange rate higher at the same time.
Sources: 연합인포맥스
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