In the Tokyo market on the morning of the 23rd, dollar/yen traded firmly in the upper ¥157s, with buying continuing against a backdrop of expectations for higher US interest rates. The pair remained in a ¥157.35-¥157.66 range, while the previous day's high of ¥157.78 and the high of ¥158.05 recorded on the 18th were in focus.
In the Tokyo market on the morning of the 23rd, dollar/yen formed a range in the upper ¥157s. After breaking above ¥157.51 early in the morning and rising to around ¥157.56, the pair remained firm, with the previous day's high of ¥157.78 and the ¥158.05 high recorded on the 18th in focus as near-term upside targets.
The backdrop included expectations for additional Federal Reserve rate hikes, with long-term US Treasury yields rising at times. Dollar buying continued in the Tokyo market on expectations that the US-Japan interest-rate differential would widen.
Euro/yen rose at times toward the mid-¥180s in line with dollar/yen, while euro/dollar remained soft against a backdrop of rising long-term US Treasury yields and traded in a $1.1433-$1.1449 range.
Going forward, the possibility of additional rate hikes is expected to be reassessed through US economic data and remarks by Federal Reserve officials, and dollar/yen may test the ¥158 range. At the same time, concerns about foreign-exchange intervention are likely to increase if yen depreciation accelerates.