In the New York foreign exchange market on 29 September, dollar-yen fell to ¥156.98 before rebounding to ¥157.60 at the close. The yen weakened and the dollar strengthened in part, due to U.S. economic data and the impact of developments in the Middle East and interest-rate outlook.
In the New York foreign exchange market on the 29th, dollar-yen fell to ¥156.98 before rising to ¥157.60 at the close. The pair traded within a range in response to interest-rate trends in Europe and the United States and reactions to economic data.
While the U.S. house price index exceeded market expectations, expectations for an October rate hike waned, and fluctuations in long-term interest rates influenced the dollar's movements. In addition, Iran-related developments affected the market as a geopolitical risk and provided some support for dollar buying.
In European trading, euro-dollar fell from $1.1358 to $1.1312 against a backdrop of receding expectations for ECB rate hikes. Euro-yen fell from ¥178.71 to ¥178.11, while pound-dollar also declined. Deterioration in the U.S. consumer confidence index and JOLTS job openings data weakened expectations for an October rate hike and was one factor behind the dollar's movements.