Following the Bank of Japan’s release of its main opinions and the publication of U.S. indicators, the foreign-exchange market moved toward yen selling and dollar buying, with movements in long-term U.S. interest rates becoming the focus.
The Bank of Japan released the main opinions from its September Monetary Policy Meeting. While views favoring additional rate hikes stood out, expectations for consecutive rate hikes in October receded. In the Tankan released at the same time, the diffusion index for large manufacturers fell below market expectations, prompting a yen-selling reaction.
The French government’s submission of an austerity-oriented FY2027 budget proposal raised concerns about French government bonds, and the 10-year yield briefly rose to a high level.
U.S. initial jobless claims totaled 197,000, below market expectations, while the four-week moving average declined from the previous week.
The September ISM Manufacturing Index came in below market expectations but remained above 50, maintaining expansion. Rising raw-material prices affected some components of the index.
Long-term U.S. Treasury yields initially rose under the influence of selling of French government bonds, but fell sharply as safe-haven buying emerged. Dollar/yen rose into the ¥158 range at times, while concerns about intervention by the government and the Bank of Japan were also present, and the pair ultimately settled in the low ¥157 range.