In the New York FX market on the 8th, dollar-yen fell to ¥153.70 before closing at ¥154.40. The main factors were lower bond yields on expectations of Treasury buybacks by the US Treasury, and a subsequent rise in long-term interest rates as higher oil prices, driven by reports from Iran, pushed yields higher.
In the New York foreign exchange market on the 8th, dollar-yen fell to ¥153.70 before rising to close at ¥154.40. During the day, expectations of Treasury buybacks by the US Treasury drove lower bond yields and accelerated dollar selling, but dollar selling eased in the latter half of the session as long-term interest rates rose in response to higher oil prices.
Euro-dollar rose from $1.1611 to $1.1634, while euro-yen fell from ¥179.48 to ¥178.46. Expectations of a narrowing Japan-Europe interest-rate differential strengthened, and euro selling and yen buying became pronounced.
Pound-dollar rose to $1.3562 before retreating to $1.3530. Dollar-swiss fell from CHF0.8120 to CHF0.8081. US consumer credit outstanding in July came to $18.062 billion, exceeding expectations.
Market commentary indicated that movements in the oil market affected long-term interest rates during these periods, in turn influencing the dollar’s relative strength.