Immediately after the July US employment report was released, the yen surged temporarily to the ¥156 range against the dollar before returning to the ¥157 range. As expectations for an early Federal Reserve rate hike receded, broad dollar selling spread.
In New York trading on the 7th, the yen rose temporarily to around ¥156.60 against the dollar. After the number of US jobs in July fell contrary to market expectations, views spread that expectations for higher US interest rates would recede.
The yen had subsequently been trading around ¥158, but surged by about ¥1.60 within minutes immediately after the report was released, at one point returning to the ¥157 range.
The move appears to have been driven by changes in the rigidity of the US labor market and a reassessment of the outlook for US interest rates. Volatility in the yen may continue depending on the direction of upcoming US economic data.
Readers will want to monitor updates on US employment indicators and interest-rate expectations, which will influence future foreign-exchange movements.