In the Tokyo market early on the 1st, the yen fell to the low ¥157s per dollar. Yen selling and dollar buying prevailed after US long-term yields rose to their highest level in approximately 19 years. The yen also weakened against the euro.
In the Tokyo foreign exchange market early on the 1st, the yen fell to ¥157.38–¥157.40 per dollar, a 48-sen decline in the yen from the previous day. Expectations for higher US interest rates strengthened against a backdrop of resilient US economic conditions, and yen selling and dollar buying prevailed.
Although the growth rate of the US August PCE price index came in below market expectations, the final GDP figure for the April–June quarter was revised upward from the revised estimate. As a result, US long-term yields temporarily reached around 5.30%, their highest level in approximately 19 years.
The yen also fell against the euro, trading at ¥178.34–¥178.36 per euro as of 8:30. The euro also fell against the dollar, with expectations for higher US interest rates cited as a factor.
In the previous day's market, movements in US long-term yields were the focus. Yen-selling pressure remained firm amid awareness of the Japan–US interest-rate differential, while the slowdown in US PCE inflation could reduce expectations for rate hikes by the Federal Reserve. The foreign exchange market is expected to continue carefully assessing US economic indicators.