Expectations are mounting that the dollar’s downtrend against the yen will continue in the foreign exchange market from tonight through tomorrow, with the trading range for one US dollar projected at ¥153.70–¥155.00. The rate also moved into the lower ¥154 range during European trading hours, against a backdrop of expectations that the Bank of Japan will accelerate its rate hikes.
Attention in tomorrow’s foreign exchange market will focus on whether the dollar’s downtrend against the yen continues, with the expected range indicated at ¥153.70–¥155.00 per US dollar. At present, the dollar has continued to weaken during European trading hours, with the exchange rate moving sharply into the lower ¥154 range.
The move is attributed in part to the view that expectations of an accelerated pace of rate hikes by the Bank of Japan are strengthening yen buying. Market participants are focusing on future policy developments and economic indicators. Market participation is expected to be limited on the 7th, a public holiday in the United States for Labor Day.
Future exchange rate movements are expected to depend on additional economic data releases and developments involving the Bank of Japan and the United States, with the rate likely to remain within a short-term range.