The dollar was modestly firmer in the New York session, but yen buying intensified and dollar-yen fell into the ¥156 range at one point. The pair has been trading below its 200-day moving average, focusing market attention on the levels ahead.
In today's New York session, the dollar itself was initially somewhat firmer, but yen strength prevailed and dollar-yen fell into the ¥156 range at one point. The pair was observed trading below its 200-day moving average, which has drawn market attention as a potential key level ahead.
Although there were few clear catalysts for yen strength, market participants pointed to yen buying alongside U.S. Treasuries and the Swiss franc. As renewed concerns over AI-related stocks heightened caution about risks in equity markets, some observers said investors were shifting funds into safe-haven assets.
A strategist said market sentiment was unstable as AI-related assets underwent a reassessment, and that increasingly cautious views were emerging regarding profitability and investment returns. Some also pointed out that U.S. Treasury prices had become more attractive as yields rose.
Euro-dollar was dominated by selling into rallies today and fell into the $1.11 range at one point. Euro-yen also fell into the ¥175 range at one point as the yen strengthened, while some observers said the euro could have further room to decline if expectations for ECB rate hikes receded.
Sterling was considered relatively firm, but some observers pointed to downside risk for the pound amid signs that expectations for Bank of England rate hikes had become overheated and caution ahead of next week's budget. Some in the short-term market also said rate hikes were being priced in excessively, and one view held that developments ahead warranted close attention.