On the morning of the 29th, the yen was stuck in the upper ¥157 range. With the announcement of the BOJ's Monetary Policy Meeting results pending, expectations for a US rate hike in December are driving fluctuations in the market.
In the Tokyo foreign exchange market on the morning of the 29th, the yen lacked a clear direction, with dollar-yen at ¥157.77–¥157.80 at noon, little changed from the previous day. With the announcement of the BOJ meeting results pending, yen buying for position adjustments and expectations of a US rate hike are pulling the market in opposite directions.
In the US market the previous day, the dollar strengthened against a backdrop of higher oil prices and rising US long-term interest rates. However, at a press conference following the FOMC meeting, Chair Warsh prompted views that the Fed would be cautious about additional rate hikes, and the dollar subsequently lost momentum again. Market participants are watching how the situation develops.
Buying by actual-demand-related participants prevailed after 9 a.m., and the yen temporarily recovered to the ¥158 range as the central rate approached. It subsequently fell to around ¥157.60 amid selling into gains. With the BOJ's Outlook Report, to be released on the 30th, and the governor's press conference pending, fluctuations are expected to continue depending on movements in US long-term interest rates.
The euro was soft against the yen and moved sideways against the dollar. Ahead of the BOJ meeting results announcement, the market expects trading to remain subdued before the BOJ meeting on the 30th and the Federal Reserve meeting in December, with views that upside in the ¥158 range will remain capped.