The yen starts to rise in the mid-JPY range, 1 dollar = 136 yen, as long-term interest rates fall in the US

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The Japanese yen exchange rate started to rise to the mid-range of 136 yen per dollar = 1 dollar the day before the 3rd as long-term interest rates fell due to the weakness of the New York stock market and the sluggish US employment index, narrowing the interest rate gap between the US and Japan.

At 8:36 a.m. on the same day, the yen exchange rate in the Tokyo foreign exchange market rose 0.12 yen, or 0.08%, from 5:00 p.m.

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The US long-term interest rate was pushed back to 3.42%, down 0.15% the previous day. Awareness of the spread of bankruptcies at regional banks led to an inflow of purchases into US bonds, a relatively safe asset.

According to the U.S. Employment Statistics Survey (JOLTS) released on the 2nd, the number of job openings fell for the third consecutive month to 9.59 million, the lowest level for the first time in two years.

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The fact that the easing of labor demand has progressed more than expected is also encouraging yen and dollar buying.

At 9:54 am, the yen exchange rate was traded at 0.13 yen, 0.09% up 1 dollar = 136.43 to 136.45 yen.

In the foreign exchange market in Sydney, Australia, the yen exchange rate took over the trend in the overseas market and rose 0.95 yen from the previous day to 1 dollar = 136.45 to 136.55 yen.

Previously, on the 2nd (local time) in the New York foreign exchange market, the yen exchange rate rebounded in 5 trading days, closing at 1 dollar = 136.50 to 135.60 yen, up 0.90 yen from the previous day.

As long-term interest rates fell due to the decline in the New York stock market and sluggish employment indicators, the interest rate gap between the US and Japan narrowed, leading to active yen buying and dollar selling.

The Federal Reserve System (Fed) will raise the base rate by 0.25 percentage point at the Federal Open Market Committee (FOMC) held until the 3rd, but the observation that the end of the hike is getting closer also encouraged selling the dollar.

The yen fell against the euro on the Tokyo foreign exchange market. At 9:52 am, 1 euro = 150.34 to 150.35 yen, down 0.08 yen from the previous day.

Against the dollar, the euro is rising. At 9:52 am, 1 euro = 1.1014 to 1.1016 dollars, up by 0.0016 dollars from the previous day.

Source: Donga

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