The yen weakened, with USD/JPY briefly falling to the low ¥158s per dollar. While views that the rate-check effect has been offset are gaining ground, expectations for an additional US rate hike are strengthening.
The yen weakened, with USD/JPY briefly falling to the low ¥158s per dollar. This was the weakest level in three weeks, heightening tension in the foreign exchange market.
News reports pointed to the possibility that the effect of the rate check (intervention effect) had been offset, and continued close attention is expected to be paid to market developments. The situation is shaped by various factors, including comments from financial authorities and the market response.
According to data reported by Reuters, LSEG estimates showed that the probability of the Federal Reserve (FRB) raising rates by at least 25 basis points at its October meeting had risen to around 70%. This has raised awareness of a shift away from expectations that US interest rates would remain unchanged.