Dollar buying prevailed in the New York foreign exchange market on the 21st in the absence of US data releases. As expectations for a rate hike later this year strengthen ahead of the US-China summit, concerns about intervention during Japan's holiday period remain strong.
In the New York foreign exchange market on the 21st, dollar buying took the lead on expectations that the FOMC would strengthen prospects for a rate hike later this year, despite the absence of any major US economic data releases. Amid lingering uncertainty over oil futures and geopolitical risks, concerns about intervention to correct yen weakness, moving in tandem with equity markets, also drew the attention of market participants.
Chicago Fed President Goolsbee said the Federal Reserve needs "credible evidence that supply shocks are receding," while expressing optimism that inflation could reach the 2% target. Market attention focused on the outlook for the September FOMC and its policy response.
US Treasury Secretary Bessent called the outcome of his talks with China's vice premier "extremely successful" and said the US and Chinese presidents could have two more opportunities to meet after this summit. Early trading in the New York market saw dollar-yen at levels in the ¥158 range and euro-dollar at levels in the 1.16 range.