In the New York market on 4 September, the yen temporarily weakened to the lower ¥156 range. Strong US jobs data prompted trading focused on the interest-rate differential between Japan and the United States.
In the New York foreign exchange market on 4 September, the dollar stood at ¥156.15–¥156.25 as of 5 p.m., with the yen down about 40 sen from the previous day. The yen temporarily weakened and the dollar rose rapidly at one point against the backdrop of strong US jobs data.
Employment gains in the August jobs report substantially exceeded market expectations, reportedly strengthening views that the Federal Reserve Board (FRB) could signal an early rate hike to curb inflation. At the same time, some investors remained on the sidelines ahead of the 11 September release of the CPI, which has a significant impact on monetary policy.
The yen was briefly bought back during the day, and the market remained volatile against the backdrop of the outlook for the Japan-US interest-rate differential. Some market participants were reportedly seeking to assess future developments, including the impact of the CPI release.