In the New York market on the 16th, USD/JPY fell to ¥157.70 before rising to ¥158.34 at the close. Developments in US and European interest rates and concerns over the situation in the Middle East had an impact, while crude oil futures also extended their gains.
In the New York market on the 16th, USD/JPY temporarily fell to ¥157.70 before rebounding to the lower half of the ¥158 range at the close. The dollar came under selling pressure after Fed Chair Warsh said he would not indicate his policy decision in advance, causing expectations for an additional rate hike at the October FOMC meeting to recede. Long-term interest rates subsequently rose in line with higher crude oil prices, bringing the dollar sell-off to a pause.
EUR/USD fell back to 1.1208 after reaching a peak of $1.1262. EUR/JPY fell from ¥177.90 to ¥177.38, while USD/CHF moved from CHF0.8218 to CHF0.8260.
BOJ Governor Ueda indicated a continued stance of raising interest rates, saying that underlying inflation exceeding 2% could not be tolerated, which became a factor supporting yen buying.
New York crude oil futures extended their gains on the 16th. Concerns over heightened tensions in the Middle East, a prolonged Russia-Ukraine war and supply shortages resurfaced.
Major economic data released included a 1.1% month-on-month rise in the US September import price index, a 0.7% month-on-month rise in US September industrial production, a 76.9% capacity utilization rate and a fiscal balance of -$26.9 billion.