Dollar-yen remained around ¥159.80 in afternoon trading in Tokyo on the 31st, holding firm. The view that expectations for US Federal Reserve tightening are likely to prompt buying back of the dollar was reported.
In afternoon trading in Tokyo on the 31st, dollar-yen moved in a range of ¥159.73 to ¥160.20, while euro-yen traded between ¥185.17 and ¥185.58, and euro-dollar between $1.1579 and $1.1594. With few market catalysts, the dollar is unlikely to attract aggressive buying, but the market remains firm.
Market participants are focused on the Federal Reserve's monetary policy outlook, and a view was expressed that expectations for Federal Reserve tightening could at times trigger buying back of the dollar. There was also speculation that dollar-yen could recover to the ¥160 level if dollar buying resumes in European markets.
The current trading range is limited, and dollar movements could change in the short term depending on developments at the Federal Reserve. The view was expressed that the foreign exchange market will continue to be driven mainly by Federal Reserve-related news and global interest-rate trends.