In the New York market on the 13th, the yen continued to trade nervously around ¥160 to the dollar. Although U.S. PPI came in below market expectations, strong concern over government and Bank of Japan intervention limited the yen's scope to rise.
On the 13th, the yen traded around ¥160 to the dollar in the New York foreign exchange market. U.S. October PPI rose 0.3% month on month and 6.5% year on year, below market expectations of increases of 0.4% and 6.6%, respectively. Dollar selling and yen buying temporarily prevailed as a result, pushing dollar-yen down to around ¥159.78.
The interest-rate trend did not last, however. The U.S. 10-year Treasury yield temporarily fell to around 5.1129%, but rebounded to around 5.1718% at around midnight. With expectations for additional rate hikes by the Federal Reserve remaining strong, dollar buying again prevailed, and dollar-yen recovered to around ¥159.99.
Concern over government and Bank of Japan intervention was strong around the ¥160 level, limiting further gains. The pair was pushed back to around ¥159.76 shortly before 11:30 p.m. and was trading at ¥159.82 as of midnight, slightly below ¥160.01 at 10:00 p.m. Finance Minister Satsuki Katayama (片山さつき) said that "one-sided, rapid movements have recently been observed" and indicated that the authorities would respond appropriately in coordination with the U.S. Treasury. The euro traded in the $1.106-$1.107 range, while euro-yen remained in a ¥176.60-¥177.13 range.
The reference range for dollar-yen was ¥159.66-¥160.19, euro-dollar was $1.1043-$1.1073, and euro-yen was ¥176.60-¥177.13. Market participants continue to focus on the authorities' stance around ¥160, with views that stronger intervention concerns will curb short-term positioning and keep the market range-bound.