The yen exchange rate started at the high 146 yen range per dollar on the 12th, as yen sales and dollar purchases took precedence due to the rise in long-term interest rates in the U.S. and the widening interest rate gap between the U.S. and Japan.
In the Tokyo foreign exchange market, the yen exchange rate was 1 dollar = 146.73 to 146.75 yen at 8:30 a.m. on this day, remaining unchanged from 5 p.m. the previous day.
Observations of policy adjustments by the Bank of Japan are limiting yen selling.
The consumer expected inflation rate for February announced by the Federal Reserve Bank of New York the day before was higher than the previous month, raising speculation that the Federal Reserve’s interest rate cut is distant, leading to an increase in long-term interest rates.
Ahead of the February U.S. Consumer Price Index (CPI) to be released on the 12th, a wait-and-see mood has spread, and equity adjustments are being made by selling yen and buying dollars.
The yen exchange rate was traded at 146.85 to 146.87 yen per dollar, down 0.12 yen or 0.08% at 9:50 a.m.
In the foreign exchange market in Sydney, Australia, the yen exchange rate started at 146.85 to 146.95 yen per dollar, up 0.15 yen from the previous day, following the overseas market trend.
Previously, on the 11th (local time) in the New York foreign exchange market, the yen rose for the 5th trading day and closed at 1 dollar = 146.90 to 147.00 yen, up 0.15 yen from the 8th.
The prospect that the Bank of Japan would adjust its current monetary easing policy at an early stage attracted yen and dollar purchases.
However, the fact that US inflationary pressures remain is a burden on the yen.
In the Tokyo foreign exchange market, the yen is rising against the euro on the 12th. At 9:49 a.m., 1 euro = 160.47 to 160.49 yen, up 0.07 yen from the previous day.
The euro is falling against the dollar. At 9:49 a.m., 1 euro = $1.0928 to $1.0930, down $0.0013 from the previous day.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.