Dollar-yen remains range-bound around ¥158. Expectations that the Federal Reserve will leave rates unchanged and inflation concerns stemming from the surge in crude oil are being watched as market factors, while the BOJ’s dovish stance and the U.S. deficit shock are creating a stalemate.
In the New York market, expectations that the Federal Reserve would leave rates unchanged in October grew following upside surprises in the U.S. September CPI and PPI, and the dollar temporarily fell to ¥157.69. After U.S. long-term yields declined, however, WTI crude oil surged into the ¥101 range amid heightened tensions in the Middle East, sending the U.S. 10-year Treasury yield higher again and prompting dollar-yen to rebound into the ¥158 range.
During Asian trading today, the 19th, dollar-yen remained subdued in the lower ¥158 range. Ahead of the blackout period for various countries’ policy meetings next week, market activity based on comments from central bank officials has been limited, with markets waiting for the release of economic indicators.
Concerns over the massive debt of a major AI infrastructure company are also affecting dollar-yen. Risk aversion has strengthened through declines in U.S. technology stocks, and the trend of the BOJ’s dovish stance and the U.S. deficit shock creating a stalemate is expected to continue.
Overall, the article suggests that the battle around ¥158 may continue to fluctuate depending on market factors, with market participants watching economic data releases and central bank developments.