In the New York market on the 16th, the yen traded in the low ¥155s per dollar. Higher oil prices drove up US long-term interest rates, prompting yen selling on expectations of a rate hike by the FRB. The dollar's strength continued in the Tokyo market, with the possibility of an additional BOJ rate hike emerging as a key focus for the market going forward.
In the New York market on the 16th, the yen traded in the low ¥155s per dollar. As of 8:40 a.m., the yen was down 7 sen against the dollar from the previous day at ¥155.12–¥155.22 per dollar. The yen was sold and the dollar bought as higher oil prices drove up US long-term interest rates and strengthened expectations that the FRB would raise interest rates.
The dollar-yen pair also traded firmly in the Tokyo market. After briefly moving toward yen appreciation in morning trading, it rose as high as ¥155.49. Expectations of a US rate hike and the high level of the US 10-year Treasury yield supported the dollar, while the euro also strengthened against the yen.
The morning trading ranges in the Tokyo market on the 16th were ¥155.03–¥155.49 for dollar-yen, ¥178.88–¥179.31 for euro-yen, and $1.1532–$1.1545 for euro-dollar.
Market participants said they wanted to assess the outcomes of the FRB and BOJ monetary policy meetings scheduled for this week. In particular, whether the BOJ will implement an additional rate hike is seen as a pivotal factor that will determine the direction of the yen market going forward.