Dollar-yen closed at ¥157.95 in the New York market on the 27th, with dollar buying prevailing as strong US data drove long-term yields higher. With the FOMC due on the 28th, the market is expected to adopt a wait-and-see stance, while the yen remains subject to uncertainty ahead of the BoJ meeting.
In the New York foreign exchange market on the 27th, dollar-yen traded in a range of ¥157.67 to ¥157.97 and closed at ¥157.95. Preliminary September US durable goods orders, the October consumer confidence index and September new home sales all came in strongly above market expectations, and dollar buying prevailed as long-term yields rose.
There is a view that solid US economic data will continue from the 28th onward, and active trading is likely to be subdued until the FOMC results are released. The dollar may test around ¥158, but selling on rallies is also likely, with the range expected to be re-established.
In the Middle East, expectations for a diplomatic resolution to the conflict involving Iran reduced supply concerns, causing NY crude futures to fall into the $99 range. Meanwhile, with the BoJ Monetary Policy Meeting beginning on the 29th, Governor Ueda (植田)’s comments and whether the BoJ hikes rates could have a significant impact on the yen. Attention is also warranted on persistent concerns over France’s fiscal position and political situation.