In the New York market on the 6th, dollar-yen traded in the ¥158 range before closing at ¥158.15. The US August trade deficit expanded more than expected, prompting views that it would weigh on third-quarter GDP growth. Long-term yields fell, and dollar weakness and yen weakness intensified.
In the New York FX market on the 6th, dollar-yen rose temporarily to ¥158.22 before closing at ¥158.15. In addition to comments from the US Treasury Secretary, the larger-than-expected expansion in the US August trade deficit was a major factor in trading, bringing the dollar’s dominance to a pause.
The expansion of the US August trade deficit prompted speculation that it would restrain third-quarter gross domestic product (GDP) growth, leading to lower long-term yields and encouraging dollar selling. The view that expectations for a Bank of Japan rate hike had receded also contributed to yen weakness.
Euro-dollar rose to $1.1277 before falling back to $1.1244 and closing at $1.1260. Euro-yen rose to ¥178.34 before falling back to ¥177.73. Pound-dollar rose from $1.3261 to $1.3286.
Dollar-Swiss rose from CHF0.8300 to CHF0.8326. As the recovery in French bond prices brought the rise in yields to a pause, the market overall showed a euro-buying, dollar-selling trend.