On 17 September, the yen was in the low ¥156 range against the dollar in the Japanese market, while the dollar's post-FOMC gains eased. The market, affected by the U.S. rate hike, moved higher alongside the Nikkei 225.
In the Japanese market, the yen traded around ¥156 to the dollar, while the dollar's momentum eased even after the FOMC raised rates. Ahead of the BOJ's monetary policy decision, selling of the yen intensified, limiting further moves.
The FOMC raised its policy rate by 0.25 percentage point locally, and participants' rate projections signaled another hike this year. In response, the U.S. 2-year Treasury yield rose to 4.74%, while the 10-year yield recovered to the 5% range.
Although the impact of the stronger dollar remained in focus in the foreign-exchange market, concern over a widening U.S.-Japan interest-rate differential intensified ahead of the BOJ's decision. Kugo Hasegawa (長谷川 久悟) of Mizuho Bank said that "the market may have exhausted its catalysts," expressing the view that extreme yen weakness would be limited before the BOJ's decision.
Stocks extended their gains, with the Nikkei 225 rising more than 700 points, or 1.1%, at one point. Buying of financial stocks such as banks and insurers, as well as trading companies and game stocks, led the advance, and the TOPIX also held at a high level.