Dollar selling prevailed in the London market, but dollar/yen traded in the lower ¥159 range with a limited trading range, while movements in the major currencies were also limited. Attention remains focused on the yen amid reports pointing to expectations of a Bank of Japan rate hike.
Dollar selling prevailed in the London market, while dollar/yen continued to trade in the lower ¥159 range. Euro/dollar moved from the lower to middle ¥1.15 range, and pound/dollar moved from the upper ¥1.34 range to above ¥1.35. Liquidity was low in the summer doldrums, and some market participants were reported to be holding back from trading.
There was a period in the early Tokyo hours when reports pointing to expectations of an early Bank of Japan rate hike were circulated, but yen buying was restrained during London hours, and movements in the cross-yen pairs were limited. Euro/yen traded in the upper ¥183 range, while pound/yen moved from the upper ¥214 range to the lower ¥215 range. Overall, the yen showed little clear direction.
The release of NY retail sales and the University of Michigan consumer sentiment index is scheduled as the next focus, and price movements could be affected depending on developments in the European and U.S. markets. NY crude oil has risen slightly from the ¥81 range to around ¥83, while the U.S. 10-year Treasury yield has edged up to around 4.65–4.66%.