US PCE price growth exceeded market expectations, sending long-term US yields higher. The yen traded softly in the lower ¥159 range as markets anticipated a widening US-Japan interest rate differential.
In Tokyo foreign exchange trading on the 27th, the yen ended at ¥159.35–36 per dollar, weaker than the previous day. Against a backdrop of US PCE price growth exceeding market expectations, long-term US yields rose, and yen selling and dollar buying prevailed as markets focused on a widening US-Japan interest rate differential.
Morning trading began around ¥159.18–19 per dollar, while the euro edged lower against the yen. The yen is expected to remain on a weakening trend in the New York market, with attention focused on movements in long-term US yields and Bank of Japan policy.
BOJ Deputy Governor Himino (氷見野) reiterated the previous policy stance on rate hikes, saying they would be “carefully considered at every meeting,” but provided no direct indication of when an additional hike might occur. The market remains focused on assessing upcoming US economic data and developments at the BOJ.