Yen-weakening bets have been subdued, while dip-buying in the dollar has been observed. The daily FX report covering the 9th to 10th summarizes key market focus points, including the U.S. Treasury Secretary's verbal intervention, Chinese economic indicators and the U.S. Treasury's announced buyback amount.
In Wednesday's foreign exchange market, the dollar temporarily weakened and the yen strengthened following an unusual verbal intervention by U.S. Treasury Secretary Bessent. The dollar narrowed its decline as higher oil prices provided support and ended in the mid-¥153 range. Market attention again turned to expectations for a Bank of Japan rate hike, and views are spreading that the yen's weakening momentum is likely to remain subdued.
China's August CPI rose 0.8% year on year and PPI rose 3.8%, both accelerating beyond market expectations, as higher crude oil and nonferrous metal prices pushed up domestic prices. As a result, trends in resource-related markets also affected USD/JPY trading.
The U.S. Treasury announced that it would buy back up to $6 billion of Treasury bonds with remaining maturities of 10 to 20 years on 10 September, prompting long-term interest rates to rise in the market. The scale of the purchases, well above previous levels, attracted attention.
The U.S. president said the war would end "immediately" after the midterm elections and also commented on the future direction of gasoline prices. These remarks could affect the short-term direction of the foreign exchange market, but expectations remain widespread that USD/JPY will continue to face resistance on the upside today.