Ahead of the release of the US Consumer Price Index, the dollar is trading in the lower ¥159 range against the yen in the New York market. Expectations of a September rate hike by the Federal Reserve, combined with rising crude oil prices, are driving market activity.
In the New York foreign exchange market on the 11th, the dollar was trading in the lower ¥159 range. Factors cited for the yen's decline the previous day included stalled negotiations between Iran and the United States, uncertainty over the reopening of the Strait of Hormuz, and rising crude oil prices. As a result, selling the yen and buying the dollar was the dominant market trend.
Expectations have also grown that the Federal Reserve will raise its policy rate as early as September, with dollar-buying pressure strengthening at times. Whether the dollar will break above the ¥160 level is one of the key points of focus.
The next major focus is the US Consumer Price Index (CPI), due to be released on the 12th, which could influence the direction of the foreign exchange market. In particular, depending on the CPI results, expectations for a Federal Reserve rate hike may be reassessed.