In the New York market on September 17, USD/JPY fell temporarily to the upper ¥155 range before rebounding to the ¥156 range and closing there. Lower oil prices and falling medium-term yields prompted dollar selling, but dollar buying resumed later on expectations of additional rate hikes.
In the New York market, USD/JPY fell temporarily to the upper ¥155 range before rebounding to the ¥156 range at the close. EUR/USD rose from 1.1470 to 1.1498 before retreating, while EUR/JPY rebounded from ¥178.51 to ¥179.15. As widely expected, the Bank of England left its policy rate unchanged, and sterling was initially bought before selling resumed as the pace of quantitative easing slowed.
Crude oil futures fell for a second straight session. While reports that Saudi Arabia aims to repair major pipelines raised expectations of easing supply tensions, dollar buying resumed as expectations of additional rate hikes strengthened. Among the latest US indicators, weekly initial jobless claims declined by more than expected, continuing claims fell from the previous reading, and the Philadelphia Fed manufacturing index improved. August housing starts were below expectations, while building permits were broadly in line with forecasts, and the August pending home sales index rose modestly month on month.